Many people are under the mistaken impression that diabetic life insurance does not exist. In reality, the 34.2 million diabetics in the United States have numerous life insurance options.
While diabetes is still a health concern for many people, it is still possible to obtain adequate life insurance as a diabetic. Here are some important things to consider when purchasing life insurance if you have diabetes.
Insurance companies consider a variety of factors.
In addition to whether you have diabetes, a life insurance company may want to know the following:
No matter if you have Type 1 or Type 2 diabetes,
How old were you when you were diagnosed with diabetes?
What medications you're using, as well as your height and weight
How well you manage your diabetes
Your blood sugar levels
If you have any other medical concerns, such as heart disease or high blood pressure, please let us know.
If you use tobacco,
Your complete medical history
Your ancestors' tree
"Clinical underwriting" is a service provided by some life insurance companies. (Underwriting is the process by which an insurance company determines your eligibility for coverage.) Instead of focusing on specific risk indicators, this type of underwriting considers your overall health. An insurance professional will be more knowledgeable about clinical underwriting organizations.
Diabetes life insurance underwriting varies by insurer.
Jake Irving is knowledgeable about diabetic life insurance. He is a registered insurance agent and the owner of Willamette Life Insurance in Beaverton, Oregon. Irving specializes in assisting diabetics with the purchase of life insurance. He claims that each insurer has different underwriting requirements for diabetics when it comes to life insurance.
Nonetheless, Irving claims that the majority of insurers are concerned with your age at the time of diagnosis. "Being diagnosed earlier in life allows for more time for related issues to emerge," he explains. This could make obtaining insurance more difficult.
Most insurers are also concerned about the serious consequences of diabetes. "The three main things they are concerned about are being in a diabetic coma, having an amputation, or being hospitalized," Irving explains. "However, just because you do not have one does not preclude you from obtaining coverage."
Finally, people with Type 2 diabetes are more likely than people with Type 1 diabetes to be able to obtain life insurance.
Life insurance for diabetics is frequently (but not always!) more expensive.
People who are in good health and do not smoke typically have lower life insurance rates than people who have health issues or who smoke. Having said that, Jake claims that diabetics are eligible for special insurance rates. Preferred is the most expensive life insurance pricing category.
Nontraditional plans are available.
One unconventional option is graded life insurance. If you die before a certain amount of time has passed, your beneficiaries will only receive a portion of the whole life insurance benefit. The average wait time is two years.
Another option is guaranteed issue life insurance. This option only provides a limited amount of coverage on the spot. There is no need for you to have a medical exam or answer any medical questions. Just keep in mind that you may only receive a limited amount of coverage and that your premium may be expensive. There is frequently also a waiting period.
Diabetes management can assist you in obtaining better coverage.
Life insurance companies view diabetics who are working to manage their illness favorably. This may entail seeing your doctor on a regular basis, taking your prescription medication, maintaining a healthy weight, and having lower A1C and glucose levels.
Jake believes that once you have diabetes under control, you may be able to obtain a better rate. This is especially true if you haven't been hospitalized for diabetes in a long time. (However, keep in mind that the incident may be recorded on your medical record and have an impact on your rate.)
Working with a licensed insurance agent is your best bet.
You should ideally work with an independent agent who has relationships with several life insurance companies. This means they will be able to shop around for you to find the best coverage. It also implies that if your application is denied, they will be able to use other carriers.
Consider hiring an agent who specializes in high-risk candidates like Jake. These brokers are well-versed in which carriers are most likely to offer you the best coverage.
10 Advantages of Bundling Life Insurance and Long-Term Care
You've most likely heard of hybrid vehicles. However, have you ever heard of hybrid life insurance?
This policy combines long-term care and life insurance. These hybrid policies, like hybrid cars, are gaining popularity. This is because they have distinct advantages.
How Does It Function?
Previously, most people bought long-term care insurance as a separate policy. It is now more common to obtain the coverage as part of a policy that also includes life insurance.
If you develop a health condition and require care, the long-term care section of your policy will cover it. Meanwhile, life insurance protects your loved ones financially in the event of your death.
If you have a medical condition, you may be eligible for long-term care. Your loved ones receive the full death benefit if you never use the long-term care benefit.
The Top Ten Advantages of a Hybrid Life Insurance Policy
More extensive coverage. A hybrid life insurance and long-term care policy provides two critical coverages for you and your loved ones.
It is simpler to obtain. Medical underwriting for a hybrid life insurance policy is frequently less stringent than for a solo long-term care insurance policy. In fact, some hybrid policies require only a few health-related questions to be answered.
Payment options that are flexible. A hybrid life insurance policy is available in two forms: as a lump sum or in annual installments.
Tax breaks are available. Life insurance proceeds paid to heirs are not taxed. Furthermore, long-term care insurance premiums may be deducted from your state and federal taxes in some cases.
There is less time and effort required. A single policy is frequently easier to investigate, purchase, and manage than two separate policies.
Fewer premium hikes. Many people are concerned about the price. This is due to the possibility of price increases for standalone long-term care policies. Hybrid policies, in general, provide greater pricing stability.
It is possible to receive a death benefit. If you never need long-term care, you usually lose the money you paid for regular coverage. Under a hybrid policy, your loved ones will receive the full death benefit if you never require long-term care. Some insurance policies even guarantee a small death benefit regardless of the circumstances.
You have the option of locking in your premium. Some hybrid life insurance policies allow you to predetermine your premium payments.
There is the option of a money-back guarantee. Certain hybrid policies may refund your money if you decide you don't want the policy after a certain period of time.
Absolute serenity. Hybrid life insurance coverage alleviates concerns about potential long-term care costs while also contributing to your family's financial security. Who doesn't need that?
Obtaining Coverage
A certified insurance agent can help you decide whether a hybrid or standalone policy is best for your lifestyle and budget. Begin by learning about the three main methods for acquiring long-term care insurance. Also, take a look at our answers to frequently asked questions about long-term care insurance.