Over 4.3 million people in the UK live with diabetes, a chronic condition that affects how the body regulates blood sugar. For many, life insurance is an important part of their financial planning strategy. However, navigating life insurance with diabetes can feel like an uphill battle. Concerns about affordability, eligibility, and even finding the right broker can create confusion.
This guest post, brought to you by More Than Diabetes, will address the most common questions and misconceptions diabetics have about life insurance. Through their expertise and partnerships with major UK insurance companies, More Than Diabetes will help you make informed decisions about your financial future with your medical condition.
What is a diabetes life insurance?
While insurers don’t have a specific life insurance product for diabetics, most insurers offer regular life insurance policies with premiums adjusted for diabetics. Like other health conditions, these adjustments reflect your health profile and diabetes management.
These plans function just like regular life insurance: they pay a designated beneficiary a sum of money if you die or become terminally ill during the policy term. The death benefit pays out to your family or dependents to support them financially after you have passed away. The payout amount depends on the coverage level you choose and the specific type of life insurance policy you purchase.
Life insurance for diabetics: Common misconceptions addressed
1. Myth: I can't get life insurance because of my diabetes.
This is a common misconception, but simply untrue. While diabetes is a pre-existing condition, most major insurance companies in the UK will consider applications from diabetics. Whether you have type 1 or type 2 diabetes, the key factor for approval is disclosure. By transparently disclosing your diabetes during the application process, you allow life insurance providers to accurately assess your health profile and provide a fair quote.
Here’s why you might be able to get life insurance even with diabetes:
- Management plays a role: Insurance companies take into account how well-managed your diabetes is. Factors like HbA1c readings (blood sugar levels), medication adherence, and the presence of complications all influence the risk assessment.
- Competition in the market: With 12 major UK insurance companies offering coverage, there’s competition to attract customers, including those with diabetes.
- Severity matters: The severity and type of diabetes also play a role. Someone with well-controlled Type 2 diabetes might have a different risk profile compared to someone with a more complex case.
2. Myth: Life insurance for diabetics is too expensive.
Another common concern is that life insurance premiums will be sky-high for diabetics. Having diabetes (like other medical conditions) may be considered a higher risk factor, potentially leading to somewhat higher rates compared to someone without the condition. However, it may not be as expensive as you think! Here’s why:
- Individualised quotes: The underwriting process considers your overall health profile and medical history. This will often involve a medical examination, where a doctor will assess your overall health and diabetes management. Based on this information, the insurer determines your risk profile and sets your premium rate. The medical profile check considers factors like:
- Type and severity of diabetes
- How well your diabetes is controlled (HbA1c readings)
- Overall health and lifestyle habits (smoking, weight management)
- Competition drives competitive rates: With 12 major UK insurance companies offering coverage, there’s competition to win your business. This can lead to more affordable rates for qualified diabetic applicants compared to situations with limited options.
- Positive surprises: Many clients are surprised by how reasonable their life insurance quotes actually are. This is because well-managed diabetes and a healthy lifestyle can positively impact your risk profile in the eyes of insurers.
It’s important to understand that while diabetes may lead to slightly higher premiums compared to someone without the condition, the overall cost can still be very reasonable depending on the factors mentioned above.
3. Myth: Insurance brokers don't cover life insurance for diabetics.
This misconception can be a significant hurdle for diabetics seeking life insurance in the UK. Here’s why it’s important to consider a broker specialising in diabetic life insurance:
- Expertise in navigating the market: Brokers with experience in diabetic life insurance understand the nuances of different insurance companies’ policies and their approach to underwriting diabetics. They can guide you towards insurers known for being more favourable towards well-managed diabetes cases.
- Securing the best rates: A specialised broker knows how to effectively present your health profile to get you the most competitive quotes. They can negotiate with insurers on your behalf and advocate for the positive aspects of your health management.
- Understanding your needs: A good broker will take the time to understand your specific situation and financial goals. They can recommend the right type of life insurance (term vs whole life) and coverage amount to best suit your needs as a diabetic.
4. Myth: The policy won't pay out due to my diabetes.
This misconception can cause unnecessary worry. However, as long as you’re honest about your diabetes during the application process, there’s no reason your policy wouldn’t pay out in the event of your passing. In fact, according to the Association of British Insurers (ABI), a very high percentage (96.9% in 2022) of life insurance claims are successful. The main reason for claim denial is usually due to non-disclosure of pre-existing conditions. This is why a broker who understands diabetes can be beneficial. They can ensure your condition is accurately disclosed on the application and guide you through the process.
By being upfront about your diabetes, the life insurance company can then accurately assess the risk involved and set appropriate premiums. This transparency builds trust and helps ensure a smooth claims process for your loved ones later.
5. Myth: The insurance price will increase if my diabetes gets worse.
This is a misconception many policyholders with health issues have, not just diabetics. The good news is that once your life insurance policy is approved and issued, the premium amount you pay is typically locked in for the entire term of the policy, be it a term life or whole life insurance plan. This means the price won’t increase even if your health condition, including your diabetes management, changes in the future.
6. Myth: I can't get Illness Cover with diabetes.
Diabetes doesn’t necessarily exclude you from Critical Illness Cover or Income Protection Insurance. However, availability and terms vary depending on the type of diabetes you have. In short, Type 2 can get both Critical Illness Cover and Income Protection whereas Type 1 can get Income Protection, but not Critical Illness Cover.
Here’s why these options might be a good fit for diabetics:
Critical Illness Cover: This type of insurance pays out a lump sum if you are diagnosed with a critical illness, such as cancer, heart attack, or stroke. This financial safety net can help you manage the costs associated with treatment and recovery, alleviating some of the financial burden during a difficult time.
Income Protection: This insurance provides financial support if you’re unable to work due to illness or injury. This can be particularly valuable for diabetics, as some diabetes complications can potentially impact your ability to work. Income protection helps ensure you can maintain your financial security even if your illness prevents you from earning a regular income.
7. Myth: I'm too young to worry about life insurance.
Many people mistakenly believe life insurance is only necessary at certain ages. However, life insurance can offer many benefits for everyone. Here are a few factors young diabetics should consider:
Peace of mind: Life is unpredictable. Regardless of age, life insurance protects loved ones from financial hardship if you’re gone.
Building a secure future: Even if you don’t have dependents currently, life can change quickly. Life insurance ensures you have the flexibility to protect future loved ones financially, whether it’s a spouse, children, or even ageing parents.
Lower rates early: Premiums are typically lower when you’re young and healthy. By securing a policy early, you lock in lower rates based on your current health profile. If you have a history of good diabetes management, this might be reflected favourably during underwriting, potentially leading to even better rates.
Other common questions about life insurance for diabetics
Why have life insurance for a diabetic?
Life insurance can provide a financial safety net for loved ones facing unexpected medical costs or lost income after your passing. This can cover funeral expenses, debts, or ongoing living costs. Knowing your family is protected offers peace of mind as you manage your diabetes. Unlike some conditions, most diabetics can qualify for coverage, with adjustments based on health. Life insurance might even incentivise healthy habits that benefit both your well-being and your premium costs.
How much life insurance do I need?
Knowing how much life insurance you need is an important question, and the answer depends on your circumstances. Some insurance companies advise that 10 times your gross annual salary is a good starting point for life insurance cover.
Here are some further key factors to consider:
- Dependents’ needs: If you have dependents relying on your income, you’ll want to ensure your policy can cover their expenses for a set period. This could include education costs, living expenses, or replacing the income they might lose if you were the primary earner.
- Outstanding debts: Do you have a mortgage, student loans, or other financial obligations? Factoring in the amount needed to pay these off will ensure your loved ones inherit a debt-free future.
- Desired lifestyle for beneficiaries: Consider the lifestyle you envision for your beneficiaries after you’re gone. Would you like them to be able to comfortably maintain their current standard of living or provide them with a financial safety net?
Given the unique variables involved, consulting a financial advisor or insurance broker is highly recommended. They can assess your individual needs, risk factors, and budget to recommend the right amount of coverage. This personalised approach ensures you have the financial protection you need without overpaying for unnecessary coverage.
What's the difference between term and whole life insurance?
Once you’ve determined the ideal amount of coverage you need, it’s important to choose the right type of life insurance policy. The two main options are term life insurance and whole life insurance.
Term life insurance policy is a popular choice for many, especially diabetics seeking affordable coverage. Term life offers a death benefit for a specific period (term), typically 10, 20, or 30 years. There is no cash value component, meaning the policy doesn’t accumulate any savings. However, premiums for term life insurance are generally lower compared to whole life insurance.
On the other hand, whole life insurance is the type of policy that provides lifetime coverage and also builds cash value over time. This cash value can be accessed through loans or withdrawals. While whole life insurance offers additional benefits, it typically comes with higher premiums compared to term life insurance.
How to get affordable life insurance with diabetes
Living with diabetes doesn’t have to mean sky-high life insurance premiums. Here are some ways to find affordable coverage and cost factors to consider specifically for diabetics:
- Age: The earlier you take out life insurance, the lower your premiums will generally be. This is because at a younger age you are statistically healthier.
- Healthy habits: Maintaining a healthy lifestyle, including quitting smoking, can significantly impact your premiums. This is especially true for diabetics, as good management demonstrates lower risk.
- Seek expert advice: Consider consulting a life insurance specialist with experience in diabetes. They can help you navigate the life insurance options and find plans that consider your specific health profile.
- Compare insurers: Don’t settle for the first offer. Get quotes from multiple insurers to find the most competitive rates for your situation as a diabetic.
- Compare coverage options: Discuss different policy types (term vs. whole life) with your specialist to find one that fits your budget and coverage needs.
Conclusion
Living with diabetes doesn’t prevent you from securing a safety net for loved ones in case of the unexpected. Most diabetics can qualify for life insurance, though premiums may be adjusted based on the individual health profiles.
As we’ve explored, considering key factors like coverage amount and policy type can help you find a life insurance plan that fits your needs and budget. When looking for life insurance with diabetes, it’s also beneficial to partner with a specialist broker like More Than Diabetes. They understand the unique needs of diabetics and can guide you every step of the way:
Expertise in life insurance for diabetics: They understand your unique needs and can recommend the best plan for your health profile, budget, and desired coverage.
Accurate disclosure: They ensure your diabetes is accurately disclosed and advocate for fair treatment throughout the process.
Competitive rate negotiation: Their insurer relationships allow them to potentially negotiate the most competitive rates on your behalf.
Ready to explore options and secure your loved ones’ future? Get a personalised quote from More Than Diabetes today!
This sponsored guest post is provided by the insurance broker More Than Diabetes and includes affiliate links. If you sign up through these links, we may earn a small commission at no extra cost to you, supporting our content creation.
