It’s hard to find affordable life insurance for type 2 diabetics and if you listen to all the noise about cheap diabetic rates, you’re probably going to be disappointed. Maybe even declined.
The secret to finding the best rates for someone with diabetes is to work with an independent insurance agent. Someone who can shop your unique situation with the best insurance company that works with diabetics.
Can I get Life Insurance With Type 2 Diabetes?
The short answer is, yes you can. But one of the biggest mistakes diabetics make when shopping for life insurance is, to believe the online quote they got is going to be the price they are going to pay.
“Quick Tip: Select “regular health class” on the quote form to get an estimated price. Then call 914-633-1717″
The truth is, life insurance companies are looking for diabetics who have control over their disease. Ultimately, getting life insurance with type 2 diabetes will depend on the severity of the disease.
What Insurance Companies Want to Know About Your Type 2 Diabetes
Also, known as adult onset diabetes, this disease is the most common form of diabetes. In type 2 diabetes, the pancreas doesn’t produce enough insulin, or it can’t be used effectively. Type 2 diabetes can be caused by several reasons, including poor diet, lack of exercise, and being overweight. Left untreated, diabetes can lead to organ complications, heart disease, stroke, kidney failure and premature death. So naturally, the insurance companies are concerned about covering people with diabetes.
The life insurance companies will want to know how you are managing your diabetes and how you are coping with the disease:
- When you were diagnosed
- Do you have a family history of diabetes?
- Are you exercising?
- What is your height and weight?
- What are your current and past Hemoglobin A1C levels?
- Are you taking medications to control the disease?
- Do you have any diabetic complications?
- Any other health issues?
What Insurance Policies Are Available For Type 2 Diabetics?
Having type 2 diabetes will not influence the type of policy that you can qualify for. If your diabetes is well controlled and A1C levels are 7 or below, you could qualify for term life, whole life or universal life. An A1C level below 7 could get you a standard rating. Any readings above 8 will most likely result in substandard rates. Meaning the policy could be very expensive.
Once you know that you qualify for a policy, the most important questions for choosing a policy are:
1. What problem do you want solved by life insurance? (purpose of insurance)
2. How much money will I need to solve this problem? (death benefit)
3. What is your budget for solving this problem? (cost of coverage)
4. How long will this problem exist? (temporary = term insurance. Long term = whole life or universal life)
What Are The Best Life Insurance Companies For Type 2 Diabetics?
There is no special list of insurance companies that specialize in working with diabetics but there are some companies are more “diabetic friendly” than others. An insurance agency such as ours that is experienced with high risk cases will know which carrier will be a good fit after assessing your situation.
Selecting the best life insurance company to provide you affordable rates for diabetics also requires choosing a financially stable insurance company. Since you are buying insurance for the long term, it is important that the insurance company will be around many years from now to pay your claims. This is done by checking the company’s financial ratings.
How To Assess an Insurance Company’s Financial Stability:
A.M. Best: Provides objective opinion regarding an insurer’s, issuer’s, or financial obligation’s relative creditworthiness. Their top rating is A++ – Superior
Standard and Poors (S&P): Measures the credit quality of an insurer and the ability to meet their financial obligations. Top rating is AAA – Extremely Strong
Moodys: Provides opinion of future creditworthiness of an insurers ability to pay claims in relation to the investments and current book of business. Top rating is Aaa – Highest
Fitch: Fitch credit ratings provide an opinion on the relative ability of a company to meet their financial commitments, such as interest, repayment of principal, and insurance claims. Fitch’s’ highest rating is AAA – Exceptionally Strong
While financial strength is important, competitive pricing is important too. You don’t want to pay more to one company when another company is offering the same coverage for a lower price.
Helpful Tips to Finding Affordable Life Insurance For Type 2 Diabetics
1. Go with an Independent Agency
A big mistake many people make is to trust their insurance generalist or agent who sells auto and home owner’s insurance. In most cases, these are captive agents and only represent one insurance company. These agents work for the insurance company and not for you! It’s rarely possible that they will find you affordable rates working with only one company.
Independent agencies work with life insurance carriers that specialize in issuing policies to people with diabetes. Working with several companies gives you an advantage because if one carrier declines the application another could possibly approve it.
2. Be Honest On Your Application
When submitting an insurance application, it is always best to provide complete information about your diabetes history. If your diabetes is not under control or you are not following a recommended regimen prescribed by your physician, the underwriter will probably discover this when your medical records are requested.
Underwriters are entrusted by the insurance carrier to make smart financial decisions for the insurance company. Omitting vital health information will usually result in higher rated policies or decline.
3. Shop Around
Interview several insurance agents but don’t trust the quotes they provide unless they have gathered all the information about your medical history, driving record, financial background and even medications you are taking. Without all this information, it is impossible for an agent to give you an accurate quote. The best approach is to work with a life insurance broker who knows your unique needs and has worked with diabetics in the past.