How to Get Life Insurance If You Have Diabetes

If you have type 1 or type 2 diabetes, you can still get life insurance coverage. But 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 who’s diagnosed with type 2 diabetes at a later age and controls it with diet and exercise alone will likely qualify for the best life insurance rates. If you depend on insulin or have had any complications due to diabetes, your coverage options may be more limited.

How your type of diabetes affects life insurance

You can purchase life insurance if you have diabetes. But you may have fewer options and pay more because you’re a higher risk for companies. Along with other health factors, the type of diabetes you have will have a huge impact on how life insurance companies evaluate your application, since each type affects health differently.

Life insurance for people with type 1 diabetes

People with type 1 diabetes are considered higher risk than those with type 2 and may have a more challenging time finding life insurance. Insurance companies consider type 1 diabetes less manageable, especially if insulin is needed.

Life insurance companies consider the age of diagnosis when looking at risk: A diagnosis later in life means fewer years to impact your body and health. However, type 1 diabetes is often diagnosed in children or teens, meaning you'd be seen as a higher risk.

Life insurance for if you have type 2 diabetes

Type 2 diabetes is considered lower risk by life insurance companies, especially if you can manage it with lifestyle or pills and haven’t had any complications. Since type 2 is often diagnosed in adulthood, you're more likely to be viewed favorably by companies. If you're otherwise healthy and haven't had complications, having type 2 diabetes shouldn't prevent you from getting a policy. But it will affect your risk rating and cost more.

Life insurance with gestational diabetes

Pregnant women can get gestational diabetes due to hormonal changes. It’s often temporary and goes away soon after giving birth. However, this isn't always the case, and it causes some women to develop type 2 diabetes later in life. Insurance companies will rate you higher risk, meaning you'll pay more than a woman without the condition.

You may already be pregnant and have gestational diabetes. Wait until your baby is born and the gestational diabetes has gone away to get much lower premiums. However, you should weigh the increased cost against the risks of childbirth before you decide. You can also buy one life insurance policy while pregnant and then shop around for better rates after your child is born.

Why is it hard for people with diabetes to get life insurance?

Life insurance is harder to qualify for and more expensive for people with preexisting health conditions. Insurance companies rate you based on your expected mortality, which is partly determined by your current medical conditions and likelihood of developing other critical conditions. Type 2 diabetes is often paired with other health issues, such as obesity. And both types are a risk factor for other medical conditions. So it can be difficult to find a life insurance policy with good rates.

These side effects are severe. Even diabetes-friendly life insurance companies will consider you high risk if you've had any complications or show signs that your condition isn't well controlled.

What health factors impact the cost of life insurance for people with diabetes?

When you have diabetes and apply for a life insurance policy, the company will use your current health, medical history, family history and lifestyle to decide whether to offer coverage and the rates you qualify for. They’ll want to determine if your diabetes is controlled, its impact on your body and how likely it is to endanger your health later on.

To apply, you’ll need to complete a questionnaire about your diabetes and the standard life insurance application. They may request additional records from any doctors you've visited in the past few years. And, unless you're purchasing a no medical exam policy, you’ll need to get either a paramedical exam or a complete physical.

Below are some commonly asked questions and what the companies will be looking for on your application.

Choosing the best life insurance policy if you have 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, you'll likely need to undergo additional underwriting. But you may experience side effects or complications over time, so you risk either not qualifying for additional coverage or paying a lot more.

Type of policy

Term life insurance policies are the cheapest per dollar of coverage, because they only last 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 die, you may want to buy a term policy that covers them into their adulthood. And you can convert most term policies to a permanent policy without additional underwriting, meaning later diabetic complications wouldn't matter.

On the other hand, if you know you want to leave an inheritance or ensure your spouse gets financial support when you die, you may prefer a permanent life insurance policy. Just note that they come with a cash value component, like universal and whole life insurance, so they’ll be the most expensive option.

You’re probably going to pay higher rates no matter what, so compare the cost of these against a guaranteed universal life insurance policy, which is usually more affordable. These policies are cheaper, since they have little to no cash value component, but provide lifelong coverage.

No medical exam vs. fully underwritten life insurance

No medical exam term policy coverage is usually less than $500,000 , while whole life is generally a maximum of $50,000. If you choose the no medical exam option, you'll have to complete a diabetic questionnaire and request records from your doctors. So, even if you don’t need an exam, the company will still likely find out if your diabetes isn't well controlled or you've had complications.

However, a no medical exam life insurance policy may be your best solution if you think you might have undiagnosed side effects or complications. Say you've had numbness in your hands and feet but haven't been diagnosed with neuropathy. If you apply for a fully underwritten term life policy and the complication is discovered during the paramedical exam, you could be denied a policy.

The results of the investigation would also be available to other life insurance companies, including those that offer no-exam policies. If you apply for a no medical exam policy, the company would still consider you a higher risk due to diabetes, but they’d only rate your risk based on your questionnaire and medical records.

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

What if you're rejected for life insurance coverage?

If you're rejected for fully underwritten and no medical exam policies due to diabetes, you can still buy a guaranteed acceptance life insurance policy. Consider this a last resort, because guaranteed acceptance whole life insurance, also called final expense insurance, costs the most.

Policies often have a maximum death benefit of around $25,000 and come with a two- to three-year waiting period. If you die due to a non-accident during this period, your beneficiaries would not receive the full death benefit. For instance, if you die of diabetic complications a year after getting the policy, your family would only receive the premiums you had paid, plus a small amount of interest.

Best life insurance companies for people with diabetes

The cheapest life insurance company for you will depend on the type of policy, the amount of coverage, the type of diabetes, the medication you take and when you were diagnosed. Get quotes from multiple companies to find the best one for your preferred coverage.

As a starting point, you may qualify for at least $250,000 of term coverage with these life insurance companies, depending on your age at diagnosis and how well controlled the condition is.

John Hancock Aspire with Vitality program

A new life insurance product tailored to people with diabetes is the John Hancock Aspire with Vitality program. It pairs John Hancock's Vitality option with the company's traditional life insurance options to provide reduced rates and diabetes wellness tools.

The benefits include 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 a brief health questionnaire. When you complete healthy living goals, such as exercising, eating well or participating in preventive care, you're awarded points that can be used for 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%. The discount depends on your Vitality status, which is gained by participating in those healthy activities mentioned above.

In addition to access to Vitality, if you have type 2 diabetes, you could join the Onduo diabetes management program. This system allows you to monitor your diabetes accurately, report the results to John Hancock and then potentially get larger premium discounts.

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

Once a life insurance policy is issued, the company can't cancel the policy or change your rates if you're diagnosed with diabetes later on. There are only three situations where it would be problematic, but you have options in each case: