The founder of a diabetes-focused life insurance company argues against four myths about life insurance for people with Type 1 diabetes.
There are a lot of myths and misconceptions about the ability of people with diabetes to qualify for life insurance policies. Fortunately, these frequently circulated misconceptions aren’t true. If you have type 1diabetes, you can purchase life insurance and you do have several options available to you.
Over time, there has been countless research completed for type 1 diabetes, and insurance companies have updated their underwriting guidelines. Nearly 80% of people who live with type 1 diabetes, feel that they cannot qualify for affordable life insurance. That simply is not true any longer.
We’ve seen nearly 90% of our applicants be approved for coverage. This figure is up nearly 25% over the last 15 years. Insurance companies are realizing that a person with diabetes can live a long, and healthy life.
Let’s examine some of the most common myths surrounding the insurability of the diabetes community from Diabetes Life Solutions.
Myth – People with Type 1 are uninsurable
While getting approved for life insurance is generally more difficult for people with diabetes, it can certainly be done – it just takes a little more effort and research. Premiums will be unavoidably higher for individuals with diabetes than people without diabetes; it is unfortunately impossible to eliminate being viewed as a liability due to your condition. It’s important to be mindful of how you are managing your condition, especially prior to a life insurance-based physical, to avoid appearing as more of a liability than is truly reflective of your condition.
What we’d recommend is for an applicant to work with a life insurance agent who’s properly trained to handle a person who has type 1 diabetes. You’ll also what your insurance professional to ‘shop’ out your profile to multiple companies, to secure the best pricing possibly on your policy.
Myth – People with Type 1 are ineligible for non-medical exam policies
People with Type 1 diabetes are indeed eligible for non-medical exam policies. In fact, since a medical exam or physical is not a requirement, pretty much anyone can purchase this kind of policy. There is a catch, however; due to the unforeseeable amount of risk the insurance company assumes with a non-medical exam policy, your premiums are likely to be significantly higher than with most medical-exam policies. Still, if your condition is not well managed, a non-medical exam policy may be the best option for you and your family.
Understandably, not every applicant wishes to meet with a nurse, and to have a blood and urine sample collected. It’s time consuming, and you may just be uncomfortable to go through these extra steps. For some people, a non-medical exam policy might be the best fit.
Myth – Children with diabetes do not qualify for life insurance
Life insurance companies have no qualms covering children. As is the case with any typical life insurance policy, the life insurance company will assess the risk that insuring your child will present to the company. They will ask specific health questions and most likely require a physical. As recommended with all people with diabetes, you’ll want to make sure that your child’s A1C levels, weight, and general health be managed as well as possible before an exam to increase chances for approval and for the lowest possible premium.
We’re happy to report that children with type 1 diabetes can qualify for life insurance coverage. Premiums will be higher compared to a child without diabetes. Also, the number of companies to choose from will be limited. However, we strongly recommend taking out some type of coverage on your child, as nobody knows what the future holds.
Myth – Life insurance premiums for people with type 1 diabetes are unaffordable
While it is usually true that people with diabetes pay larger premiums than non-diabetics, it is possible to obtain a quality policy that is relatively affordable. By managing your condition, by maintaining a healthy weight, refraining from smoking, and closely monitoring your blood sugar levels, you can ensure that you will receive a rate that is fair given your condition.
The truth is, life insurance for type 1 diabetics are at all time lows. Premiums are nearly 30% lower today, compared to 10-15 years ago. In addition to lower premiums, people have a lot more companies to choose from. The number of insurance carriers who are offering coverage to type 1 individuals is approaching nearly 80 companies. In our opinion, this another positive sign that insurance companies are wishing to underwrite people with chronic illnesses.
It’s important to not to be mislead by false claims that the type 1 diabetes community cannot obtain life insurance. And it’s even more important to remember to work with agents who specialize in higher risk profiles. Just because you’ve been declined for life insurance in the past, doesn’t mean you can’t qualify for coverage today.
Don’t give on finding a policy, as having peace of mind is very important to families. Protecting your family is an important financial objective for most families, so don’t let type 1 diabetes detour you from providing the coverage you need.
Author Bio: Matt Schmidt is the co-founder of Diabetes Life Solutions, which specializes in helping people with diabetes find affordable life insurance. Matt founded the company after his father was diagnosed with diabetes in 2010. He also founded Diabetes 365 to provide helpful information for those living with diabetes. Matt is a type 2 diabetic, and serves the diabetes community tirel
