Unfortunately, type 2 diabetes and insurance do not dance happily, hand in hand. Trying to find insurance after being diagnosed with type 2 diabetes can be difficult. We’re here to bring you the information you need about getting life insurance with Type II diabetes.
The Affordable Care Act has placed some legislation that makes health insurance available to diabetics but this does not apply to life insurance. Just because you have been diagnosed with diabetes does not mean that you are ineligible for life insurance. With a little knowledge and perseverance, good quality affordable life insurance is accessible to you.
Getting Life Insurance With Type-2 Diabetes: Common Types of Diabetes
Before discussing the impact of diabetes on insurance rates, it is important to understand the disease itself. According to the Diabetes Research Institute Foundation, diabetes is an inability to process glucose, the natural energy source in most foods, due to an inability to produce sufficient insulin.
There are three general forms of diabetes: gestational, Type I, and Type II. Gestational diabetes is common in pregnant women and generally reverses soon after the child’s birth. Type I, also called insulin dependent or juvenile diabetes, is an autoimmune disease in which the body attacks the islet cells of the pancreas. Because of this, the body cannot sense glucose and does not produce insulin. Though it can happen at any time, it is common in children. Type I diabetics require multiple insulin injections daily.
The more common form of diabetes, Type II or adult-onset, does not require insulin because the body is still producing it but does need medication to help the body absorb the glucose. Type II diabetes is often linked with obesity and a sedentary lifestyle which is one factor that makes getting life insurance so difficult. For more information on why obesity or being overweight impacts your life insurance click here to view our articles on obesity and life insurance.
Understanding Life Insurance and Type II Diabetes
Some folks think that understanding type 2 diabetes is easier than understanding life insurance. In general, life insurance comes in two forms with a whole bunch of little subcategories. Term life insurance will only pay out in the event of death during the term of the policy. In other words, it only pays if you die and you are current with your bill. The amount that you pay, most often in monthly installments or an annual premium, is dependent on your health, age, and the amount that you want paid out at death.
On the other hand, with whole life insurance, you pay a one-time amount based on your age and health. The insurance company invests this money in the hopes that they get to keep earning on it and make the death benefit amount back before they need to pay out. The subcategories of both term and whole life insurance revolve around how much and how often the insurance company is expected to pay benefits.
The way insurance companies make money and stay in business is by using some complex statistics to predict your lifespan and how much money you need to pay during your life to make insuring you worth their while. Most of the money that is paid to the insurance company is used in investments to increase the company’s overall revenue. The longer that they can keep your money, the happier they are. Also larger companies with robust investment portfolios and lower overhead will need less income from premium payments.
It is ultimately your job to prove to them that you will be around and paying them for a very long time. That’s one of the reasons you should find an life insurance agent that’s familiar with obtaining life insurance for diabetics. A good agent knows what policies, coverages, and companies are the best fit for your individual needs.
Not all insurance companies are the same and insurance regulations vary from state to state but they generally collect and assess the same information. In assessing risk, the company will look at your health and your family’s health histories, how well regulated your sugars are, and your overall current fitness.
Remember that Type I and Type II diabetes are very different. Most companies will look for differentiators of the two. Since Type II diabetes can be linked to weight, and your weight will influence your policy’s rating, showing that you are on an exercise and diet routine that is working will go a long way to helping you get affordable insurance. A solid six months of good health, weight loss, and regulated blood sugars is often enough to position you as best as possible to obtain life insurance.
Life Insurance Classifications
Standard premium is one of the four classifications. Super preferred is the best, being reserved for the young and very healthy. Preferred is for the young and generally healthy. Most of us fall into the standard grouping. Those with poor health or conditions that can rapidly become fatal fall into the substandard group. Since standard is the norm, a little extra weight and a diagnosis should not stop you from getting life insurance.
The right insurance company is out there for you. If you are having trouble getting life insurance with type 2 diabetes let Big Lou help you find the insurance coverage you need today.