Insurance for life When it comes to diabetes, companies have different "underwriting philosophy." If the underwriters aren't properly trained, selling life insurance to diabetics can be problematic. Underwriters at insurance firms that are familiar with diabetes underwriting can examine all of these characteristics and assess whether or not the company will accept them as a risk. Cases of moderately controlled diabetes would normally warrant a "rating," or a higher premium, but not necessarily a denial of coverage. If the diabetic customer seeking life insurance is not under control, there are choices available - it will just cost them more! Family First Life
No matter how bad your diabetes is, you can get diabetic life insurance. If the proposed insured has well-controlled diabetes and a track record of following the doctor's recommendations, the insurance rate will naturally reflect this. The higher the rate, the greater the control. Clients with well-controlled diabetes have a good chance of acquiring a cheaper premium from a traditional insurer and would be eligible for a fully underwritten policy. If, on the other hand, the client's diabetes is out of control, the rate will be higher, and the client will need to purchase a life insurance policy that ensures acceptance. Guaranteed issue life insurance is the name given to this type of life insurance.
Diabetic life insurance is more expensive than standard (completely underwritten) life insurance and can only be purchased as "whole life insurance." However, because this sort of insurance accumulates cash value and is intended to cover the client for their "whole life" rather than a "term" amount of time, it might be beneficial. Another benefit of guaranteed issue is that if the insured dies within the first three years of the policy's inception, the premiums paid into the policy will be paid to the beneficiary PLUS 10% interest. After that three-year period, the guaranteed issue insurance would pay the beneficiary the full death benefit.
Fully underwritten insurance take into account the client's entire medical history. To evaluate the client, the doctor's records are ordered, blood is drawn, a urine sample is taken, and a comprehensive screening is performed. If the insurance company decides to insure this applicant, it will be after the case has been reviewed by the firm's underwriters. If a customer is completely underwritten and passes underwriting, they will have more options than just whole life insurance (in the case of those who are in need of guaranteed issue whole life insurance). These properly underwritten applicants would have access to term insurance, universal life insurance, Survivorship Universal Life Insurance, and standard Whole Life Insurance.
The underwriters at the insurance business consider whether the customer is a type one diabetic (type I diabetic, type 1 diabetic, type 1 diabetes, type I diabetes) or a type two diabetic when evaluating a client with diabetes (type II diabetic, type 2 diabetic, type 2 diabetes, type II diabetes). Another factor considered by the underwriters is whether the client is a juvenile or adult-onset diabetes. The amount of haemoglobin A1C is also a determining factor (this is a more comprehensive test, showing the blood sugar levels over about a 3 month period of time as opposed to a quick "snapshot" blood level test).
Fully insured life insurance may be obtained if the client's A1C level is less than 8, subject to the client's complete medical documentation. Guaranteed issue life insurance is a more achievable goal if the client's A1C score is over 8.
One of the concerns that applicants with insulin-dependent type 1 diabetes have is if their insulin pump will prohibit them from obtaining life insurance. Because the client's insulin level is maintained at a steady level, an insulin pump is actually a good feature when it comes to life insurance underwriting.