Original Post: May 27th, 2017
When you decide it’s time to purchase life insurance, you’ll probably have a few questions about coverage, policy types, and whether or not you’re likely to be approved for your desired policy. Having diabetes, you’ll want to ask even more questions, than a person who does not have a chronic illness.
Asking these questions is extremely important. The outcome will determine your status of approval, your monthly premiums, and the extent of financial protection and preparedness that your family will receive in the event of a loss.
Taking a proactive approach to alleviating what could be a huge financial burden is an admirable gesture – one that will bring you peace in knowing that even if you’re not present, your family will be financially stable.
If you’re having trouble deciding what questions you need to ask before settling on what the best diabetes life insurance policy is, don’t fret. We’ve compiled a list of the most important questions to consider when purchasing life insurance so that you feel confident in your decision.
Will Having a Pre-Existing Condition Affect My Eligibility?
The short and simple answer to this question is yes. However, while your pre-existing medical condition will most likely influence your approval and premium in some way, the level to which your medical condition affects your policy and eligibility is entirely dependent on the severity of your condition, how well it is managed, your prognosis, and the amount of liability that the insurance company is willing to assume.
If your condition is well managed and you are otherwise healthy, it is likely that the policy underwriters will deem you eligible for the policy of your choice, at a slightly higher premium than individuals that do not have a medical condition.
Regardless of your health standing, there is usually a policy option for everyone, and it is worth the peace of mind to secure a policy if you can afford to do so.
One option for people who are in poor overall health is guaranteed issue life insurance policies. These policies accept everybody, and there are no health questions.
What Information Should I Provide?
Having Diabetes makes applying for life insurance a little more difficult, compared to non diabetics. Ideally, you will want to provide key diabetes history information, to an agent to receive a real and accurate quote. Here is a list of questions, an agent should be asking you:
- Current Age
- Age first diagnosed with Diabetes
- Type of Diabetes you have
- Current medications, if any, being prescribed to help control your diabetes
- Any use of Diabetes technology such as a CGM or insulin pump?
- Most recent A1C reading. ( if known)
- Any diabetic complications?
- Do you watch your diet?
- How often do you test your blood sugar
- Do you exercise regularly ?
- List any other medications currently taking outside of Diabetes medications
- Do you see an Endocrinologist?
- List of any major health issues such as Cancer, heart attacks, strokes, HIV, sleep apnea, depression, anxiety etc.
- Any use tobacco products within the last year?
- What is your current height and weight?
Do I have to Get a Physical Exam?
Unless you’ve chosen a no medical exam life insurance policy, you should expect to be required to receive a physical exam – complete with routine blood work, and additional urine test.
A paramedical exam consists of a nurse meeting you at your house or place of business. The examination will consist of the nurse taking your height, weight, and blood and urine sample. They will also ask basic health history questions. Your agent can provide you the sample questions to help you prepare for it. The entire appointment should take about 20 minutes.
The urine and blood samples are sent to an independent lab, where the results are ultimately shared with you, and the insurance company.
The life insurance company will then use this information to determine how well your condition has been managed and whether or not they are willing to assume liability and grant you a policy. The results will also influence your premium amount.
No Medical Exam Life Insurance Options
If you prefer to go with a policy that doesn’t require an exam, you would most likely have term life insurance or whole life insurance options available to you.
Type 1 Diabetics won’t have as MANY no medical exam options compared to people with Type 2 Diabetes, but will have options none the less.
The type of coverage you need, amount of diabetic life insurance, and your diabetes history will all determine what exact options you’ll have. Simply contact us, and an agent would be more than happy to provide you with the options you would have available to you.
What Riders Should I Consider?
Life insurance riders could be a very valuable option, you can add to your policy. Usually, we recommend getting an approval from a company first, and then speaking with us about the available riders.
Many riders allow you to access part of the death benefit while you are living, if diagnosed with chronic, critical, or a terminal illness.
Having a policy with these types of riders would help your family out, if you needed to access the death benefit after being diagnosed with an illness.
Or maybe you’d need a rider to pay for your policy, should you become disabled. Just speak with our agents, and let us help you determine what life insurance riders are best for you!!!
Should I Consider the Companies AM Best Rating?
Absolutely! There are plenty of A rated or higher life insurance companies that are diabetic friendly. Your agent can always provide the financial rating for various companies. Or you can quickly look them up on the internet. You always want to feel comfortable about the financial position your life insurance provider is in.
Do I Need to Work with an Independent Agent?
YES!!! Especially since you have Diabetes, you need to work with an agent who represents several companies. Not only that, you need to work with an agent or agency WHO ONLY works with the diabetes community. Speak with a qualified independent life insurance agent at Diabetes Life Solutions.
Many websites claim they specialize in working with diabetics, but upon further review, they also claim the specialize in working with people with heart disease, cancer history, or other health issues.
These agents are generalists, and not specialists.
If you have Type 1 Diabetes, do you see an Endocrinologist, or just a physician to help you with your Diabetes?
Diabetes Life Solutions was created by people with Diabetes, to provide life insurance advice to the diabetes community. This is all we do . Put our expertise to work for you and your family.
How Much Life Insurance Coverage Do I Need?
How much life insurance coverage you need is dependent on what finances you will need remedied or replaced in the event of the passing of the policyholder.
When deciding how much coverage your family will need, be sure to account for debts (to include mortgage, car payments, loans and credit cards), monthly payments, and lost wages. Totaling these amounts will help you better visualize exactly how much coverage you will need.
Some financial experts recommend a minimum of TEN times your annual salary, and to have enough coverage to help raise your children, send them to college, and to allow for your spouse to maintain current qualify of life.
Will My Permanent Insurance Policy Generate Cash Value?
Whether or not your policy will generate cash value depends on the policy type. Term life insurance policies build no cash value, they simply guarantee payout of the death benefit should the policyholder pass while holding the policy. Whole life insurance is the policy type that builds valuable cash value – a benefit that you can utilize while living if needed. Also an indexed universal life policy could be an option.
These policies are less expensive compared to a whole life insurance policy. Many of our diabetic clients tend to prefer a policy like this.
To find out whether you need a permanent life insurance product, that accumulates cash value, simply speak with one of our agents. You may only need a permanent product, that only provides a permanent death benefit.
Can I Retain Coverage Indefinitely?
If you’ve chosen a whole life policy, or some type of universal life insurance, you can retain coverage for as long as you continue to pay the premiums. If you’ve chosen a term life insurance policy, you will only retain coverage for the duration of the agreed upon term.
Understanding why you should have a life insurance policy in place is the first part of the decision. Knowing which type of policy to hold and what questions to ask about those policies is the second. You will always want to work with an agent who stays in touch, and offers reviews of your life insurance portfolio.
As your life changes, so should your life insurance portfolio. Being young, generally a term life policy would be ideal. As you get older, you might want to consider permanent coverage.
Don’t let all of this be confusing! Just call us at 888-629-3064. Our agents are here to help you, and make the process of obtaining life insurance as easy as possible. We’ll answer your questions, and we’ll help you with determining what life insurance companies are best for your situation.