Life Insurance for People with Diabetes: What You Need to Know

Life Insurance for People with Diabetes: What You Need to Know

Diabetes does not disqualify you from getting life insurance. Millions of Americans with type 1 or type 2 diabetes have active life insurance policies. What it does affect is your premium rate and, in some cases, which insurers will cover you. Understanding how underwriters evaluate diabetes helps you find the best coverage at the lowest price.

How Insurers Evaluate Diabetes

Life insurance underwriters assess diabetes through a detailed health questionnaire and, for traditionally underwritten policies, blood work. They are primarily looking for:

• A1C level: The key indicator. A1C under 7 typically results in preferred or standard rates. A1C above 9 significantly increases premiums or may lead to a decline.
• Time since diagnosis: Insurers prefer a longer, stable history over a recent diagnosis with no track record.
• Complications: Neuropathy, retinopathy, nephropathy, or cardiovascular disease raise risk considerably.
• Management: Use of insulin, oral medications, or diet/exercise control — and how consistently it is managed.
• Other health factors: Weight, blood pressure, and cholesterol interact with diabetes in underwriting.

Type 1 vs Type 2 Diabetes

Type 2 diabetes that is well-controlled with diet, exercise, or oral medications is viewed most favorably. Well-managed type 2 can qualify for standard or near-standard rates at many insurers.

Type 1 diabetes is viewed as higher risk due to greater variability and historically younger age of onset. Well-managed type 1 with good A1C, no complications, and regular medical supervision can still qualify for coverage, but typically at substandard rates with a table rating (added premium percentage).

What Rates to Expect

For well-controlled diabetes (A1C under 7, no complications, regular care):

• Type 2: Standard to Standard Plus rates are achievable
• Type 1: Table ratings (adding 25-100% to base premium) are common

For poorly controlled diabetes or those with complications, expect either higher table ratings or possible policy declinations from some insurers. Guaranteed issue policies are available as a fallback.

Which Insurers Are Best for Diabetics?

Not all insurers underwrite diabetes the same way. Some specialize in or take a more favorable view of applicants with managed diabetes:

• Prudential and Pacific Life have historically been favorable for well-managed type 2
• Banner Life and Legal & General America offer competitive rates for standard diabetic applicants
• John Hancock Vitality program rewards health management with premium discounts over time

Working with an independent life insurance broker who shops multiple carriers is essential — the difference between the best and worst rates for a diabetic applicant can be 50-200%.

Policy Types Available

Term life insurance: Best option for most diabetics seeking affordable coverage. Available with traditional underwriting for well-controlled cases.

Whole life insurance: Available but premiums are high. The added cost of diabetes on top of permanent insurance premiums makes this expensive.

Guaranteed issue whole life: Available without medical questions for ages typically 45-85, but coverage is capped (usually $25,000) and premiums are high for the coverage amount.

No-exam term life: Some companies offer simplified issue policies without a full medical exam. A1C above a threshold may be disqualifying even without an exam.

Getting the Best Rate: What to Do Before Applying

1. Optimize your A1C before applying (if you are not urgently in need of coverage)
2. Ensure your diabetes is being actively managed with a doctor on record
3. Address any co-morbidities (blood pressure, cholesterol) that amplify risk
4. Work with an independent broker who can shop multiple carriers simultaneously
5. Get quotes from at least 3-5 carriers — rates vary significantly for diabetics