Why is life insurance more expensive for a diabetic?
Life insurance companies essentially bank that you’ll be alive long enough to pay premiums sufficient to cover your death benefit. The shorter length of time a person like you lives on average, the more a company is going to charge.
They ‘re not in it to lose money.
Life insurance companies don’t want to gamble. They rate their policies based on several factors, including your health status.
A diabetic is a risk to the insurer.
A study conducted by the American Diabetes Association suggests that the rate of death among diabetics due to heart disease is possibly as high as 75%.
One recent study on diabetes indicates type 2 diabetes, well controlled or not, results in a high occurrence of heart disease. Strokes and heart attacks are the leading cause of death among type 2 diabetics
Under-control type 2 diabetics tend to live longer and pay over a greater period of time, so they tend to pay less for life insurance. As a diabetic you know how important it is to take care of yourself, we’ll see how this can pay off in your life insurance premiums.
Some companies just do not want any special risks and bump the price up. They find special risk applicants disruptive to their primary business – insuring people who have no major health issues. You can waste a lot of time with companies like this, and you end up with a very high premium.
In the case of life insurance, it’s within the insurer’s rights to choose to not provide life insurance based on an applicant’s chronic health conditions, like diabetes. Many charities have been lobbying to get this changed, with no great success so far.
However, as a diabetic it is interesting to know that some insurance companies are changing their view on diabetes.
The insurance industry is always changing.
Some insurance underwriters we talked to now put less emphasis on lowering glucose numbers, as they were putting too high an emphasis on a low HbA1c as a factor in mortality rates.
As research into the cause of death of diabetics continues, some life insurance companies are becoming less stringent about glucose levels. However they may also be adjusting mortality tables to reflect the rising evidence of the prevalence of heart disease in diabetics.
The best life insurance rates for diabetics generally go to late onset (after age 50), an HbA1c of 6.5 or under, with no complications resulting from diabetes.
Let’s look further into this by discussing your insurance rating.