How to Get Life Insurance as a Diabetic

People with Type 1 or Type 2 diabetes can get life insurance coverage, though the policies you'll qualify for and the ease of the process will depend on your type of diabetes, the age you were diagnosed and how it's controlled.

Someone diagnosed at a later age with Type 2 diabetes who is able to control it strictly with diet and exercise will likely qualify for the best life insurance rates. If you're insulin-dependent or have experienced any complications due to diabetes, you can still get life insurance, but your coverage options may be more limited.

How the type of diabetes you have impacts life insurance

You can purchase life insurance if you have diabetes. However, your coverage options may be limited, and a policy will likely cost more since insurers will consider you higher risk. Along with other health factors, the type of diabetes you have will significantly impact how life insurance companies evaluate your application, since each type of diabetes affects your health differently.

Life insurance for Type 1 diabetics

People with Type 1 diabetes are considered higher risk than those with Type 2 and may have a more challenging time purchasing life insurance. Life insurers consider Type 1 diabetes to be less manageable, particularly as it often requires insulin to control.

Life insurance companies consider the age of diagnosis when evaluating risk, as a diagnosis later in life means fewer years when it will impact your body and health. However, Type 1 diabetes is often diagnosed in children or teens, meaning you'd be viewed as a higher risk when applying for life insurance.

Life insurance for Type 2 diabetics

Type 2 diabetes is considered lower risk by life insurance companies, particularly if you're able to manage it with lifestyle adjustments or oral medication and have had no complications. Since it is often diagnosed in adulthood, you're more likely to be viewed favorably by insurers. So long as you're otherwise healthy and haven't had complications, having Type 2 diabetes shouldn't prevent you from getting a policy, although it will affect your life insurance rating and increase how much you pay.

Life insurance with gestational diabetes

Gestational diabetes can occur in pregnant women due to hormonal changes in the body and is often a temporary condition that goes away soon after giving birth. However, this isn't always the case, and it will cause some women to develop Type 2 diabetes. Life insurance companies will therefore rate you as higher risk, meaning you'll pay more than a woman without gestational diabetes.

If you are already pregnant and have gestational diabetes, you may want to wait until several months after you've given birth before applying for a life insurance policy. The condition may go away after pregnancy, in which case you'll have an easier time qualifying for life insurance and likely receive lower quotes.

Why is it hard for diabetics to get life insurance?

Life insurance is harder to qualify for and more expensive for people with pre-existing health conditions. Insurers rate applicants based upon their expected mortality, which is influenced by your current medical conditions and likelihood of developing additional critical conditions. Since diabetes is often accompanied by other health issues—such as obesity—and is a risk factor for other medical conditions, it can be difficult to find a life insurance policy with good rates as a diabetic.

Given the severity of these side effects, even diabetic-friendly life insurance companies will consider you a high-risk applicant if you've had any complications or your application shows signs that your condition isn't well-controlled.

What health factors impact the cost of life Insurance for diabetics?

When you have diabetes and apply for a life insurance policy, the insurer will determine whether they offer coverage and the rates you qualify for based upon your current health, medical history, family history and lifestyle. For diabetics, life insurance companies will want to determine if your condition is controlled, how it has impacted your body and how likely it is to negatively impact your health going forward.

To apply, you will need to complete a questionnaire about your diabetes in addition to the standard life insurance application. They may request additional records from any physicians you've visited in the past few years. And, unless you're purchasing a no-medical-exam policy, the insurer will require you to take either a paramedical exam or a complete physical.

Below are some questions commonly asked of diabetics and the details insurers will be looking for when evaluating your application.

Choosing the best life insurance policy with diabetes

These factors will directly influence which policies to consider and the amount of underwriting required to qualify. If you later realize that you want more coverage than you originally purchased, you'll likely need to undergo additional underwriting. Given you may experience side effects or complications related to your diabetes over time, you risk either not qualifying for additional coverage later on or paying significantly higher rates.

Type of policy

Term life insurance policies are the cheapest in terms of cost per dollar of coverage because they only extend for a predetermined period of time, such as 10 or 20 years, and have no cash value. So, for instance, if you're concerned about your children being able to pay for college if you passed away due to diabetic complications, you may want to purchase a term policy that extends into their adulthood. And most term policies offer the option of converting to a permanent policy without additional underwriting, meaning later diabetic complications wouldn't be considered if your circumstances change.

On the other hand, if you know that you want to leave an inheritance or ensure that your spouse receives support no matter when you pass away, you may prefer a permanent life insurance policy. Just note that permanent life insurance policies with a cash value component, like universal and whole life insurance, will be the most expensive alternatives.

Since you're likely to already pay higher rates due to diabetes, you may want to compare the cost of these against a guaranteed universal life insurance policy, which is generally more affordable. Guaranteed universal policies are cheaper, since they have little to no cash value component, while still providing lifelong coverage.

No medical exam vs. fully underwritten life insurance

No-medical-exam term policies typically won't exceed $500,000 of coverage, while no-exam whole life policies typically offer a maximum of $50,000 of coverage. If you choose the no-medical-exam option, the insurer will still ask that you complete a diabetic questionnaire and request records from your doctors. So, while you may not undergo a paramedical exam, the insurer will still likely find out if your diabetes isn't well controlled or you've been diagnosed with complications.

However, a no-medical-exam life insurance policy may be your best solution if you believe that you might have diabetes-related side effects or complications that haven't been diagnosed. Say, for example, you'd experienced numbness in your hands and feet but hadn't been diagnosed with neuropathy. If you applied for a fully underwritten term life insurance policy and the complication was discovered during the paramedical exam, you could be rejected from receiving a policy.

In addition, the results of the insurer's investigation would be available to other life insurance companies, including those that offer no-exam policies. However, if you initially applied for a no-medical-exam policy, the insurer would still consider you a higher risk due to your having diabetes but would only evaluate your risk based upon your questionnaire and medical records.

Whether you apply for a no-exam policy or a fully underwritten policy, it's incredibly important that you answer all questions honestly. Otherwise, your coverage may be canceled or your family's life insurance claim may be denied if you pass away.

What if you're rejected for life insurance coverage?

If you're rejected for fully underwritten and no-medical-exam life insurance policies due to your diabetes, you can still purchase a guaranteed-issue life insurance policy. We only recommend this as a last resort if you need coverage, because guaranteed-issue whole life insurance, also called final expense insurance, is the most expensive form of coverage.

Policies typically have a maximum death benefit of around $25,000 and come with a two- to three-year waiting period during which if you die due to a nonaccident, your beneficiaries would not receive the full death benefit. So, for instance, if you passed away due to diabetic complications one year after purchasing your policy, your family would just receive the sum of premiums paid plus a small amount of interest.

Best life Insurance companies for diabetics

The cheapest life insurance company for a person with diabetes will vary depending upon the type of policy you want, the amount of coverage, the type of diabetes, the medication you take and when you were diagnosed. We recommend reviewing and getting quotes from multiple life insurance companies to determine which one will provide the best rates for your preferred coverage.

As a starting point, with the following life insurance companies, diabetics may be able to qualify for at least $250,000 of term coverage depending on their age of diagnosis and how well controlled their condition is.

John Hancock Aspire Vitality Program

A new life insurance product tailored to diabetics is the Aspire Vitality Program from John Hancock. The program pairs John Hancock's existing Vitality option and the company's traditional life insurance options to provide reduced rates and diabetes wellness tools.

The Vitality program provides benefits such as free health magazines, discounts on wearable fitness devices and premium savings for participating in healthy activities. The Vitality rider is included in the price of your policy—usually $2 per month—and requires you to complete a brief health questionnaire. When you complete healthy living goals, such as exercising, eating well or participating in preventative care, you're awarded points toward better rewards.

Aspire, a diabetes-focused program, is added to the regular Vitality program. Instead of the normal 15% premium discount maximum, the discount can go up to 25% depending on your Vitality Status, which is gained by participating in those healthy activities mentioned above.

In addition to gaining access to Vitality, if you are a Type 2 diabetic, you would be able to join the Onduo diabetes management program. This system allows you to monitor your diabetes accurately, report the results to John Hancock and then potentially receive larger premium discounts.

What if you were diagnosed with diabetes after buying life insurance?

Once you've purchased life insurance and the policy is issued, the insurer can't cancel the policy or alter your rates if you're diagnosed with diabetes later on. If you purchased a permanent life insurance policy, your premiums and coverage will stay the same even if you become diabetic. There are only three situations in which it would be problematic to become diabetic after buying life insurance, but you have options in each case: