The 7 important factors of a diabetics insurance rating
Besides the standard questions insurers ask everyone to guage their risk (age, occupation, household income, etc), there are 7 factors that become more important when you are a diabetic. These are:
- Your diabetes type
- The onset age of the disease
- Your family history
- Your HbA1c readings
- Type of treatment
- Your height and weight
- Your general health.
Obviously some of these you cannot change, but others you can. Let’s have a look.
The first thing the insurer is going to look at is your diabetes type.
- Type 1’s tend to be classed as “high substandard” in the best cases, and will usually have trouble finding life insurance that is medically underwritten. An option is to look for “simplified issue” policy that isn’t medically underwritten. It’s still going to be expensive life insurance.
- Type 2’s, your degree of control is a bigger factor when looking for life insurance, especially if you are not insulin-dependent. If you can show that you keep your condition under control (based on a doctor’s recommendation and A1C values), you have a strong chance of being classed as “standard.” This will save you a lot of money.
The age when the insured was diagnosed is a big factor. Younger diabetics are usually underwritten more carefully than older diabetics.
Why is life insurance so hard to get for diabetic young people?
Insurance companies largely haven’t done mortality studies on children with any severe impairment such as diabetes or heart disease, etc so they don’t have any data upon which to base the pricing for products, and there isn’t a financial incentive for them to study and create products for a small market.
Life insurance for people under the age of 20 is almost non-existant. Some companies will look at it on a case-by-case basis, but the criteria a young person would have to meet is unclear. Typically you will have to wait till the young person is 15-20.
For type 1’s, the younger the age diagnosed, the higher the likely premium.
For type 2’s, The age the condition is diagnosed is generally not as much of a factor, as it is usually diagnosed from age 30 onwards.
Once diabetes is under control you should try to obtain life insurance as soon as possible, since it can lead to other health issues that can make it even more difficult to obtain life insurance.
The insurer will ask about your family history. They are primarilly interested in the prevalence of diabetes in your parents and grandparents, any complications they received, and if applicable, how they died. Statistically, if your family has complications or died due to a diabetes-related condition, you are more likely to have similar complications yourself.