Insurance ratings and you

Life insurance companies can’t truly look at each person individually when determining premiums. They have to group people into rating classes. These broad classifications will be used by an insurance company to determine the risks that may be associated with providing coverage to any potential customer, including a diabetic. Unsurprisingly, life insurance for diabetes tends to be rated lower than for other people.

insurance ratings diagram
The common insurance groups

The usual life insurance rating levels are Super preferred/preferred plus, Preferred, Standard and Substandard.

Luckily, many companies further split the two lower categories into varying levels, from “very low substandard”, to “very high standard”. Our aim is to find one of these companies, and work our way up these ranks.

Improving your rating means significant savings on your premiums.

For example, if a 35-year-old man or woman is applying for life cover only and they have had type 1 diabetes for a year, they would be generally looking at a 250% loading on the premium. If they had type 2 diabetes there would be a 150% loading. These figures can be reduced in half if you can achieve a higher insurance rating.

Individuals with diabetes will not receive a preferred or super preferred classification with any company. At best, highly controlled diabetics will be offered a “standard” premium.

It is really important to find a provider that understands diabetes. A track record that shows long-term control of your disease can go a long way in finding acceptance with one of these life insurance providers. Also, it would be subject to a GP report confirming that the diabetes is well controlled.

Let’s have a look at the important factors that determines a diabetic’s insurance rating.

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