The good news is that if you can demonstrate that your diabetes is under control, you may be eligible for better policies and rates.

Why life insurance companies care about diabetes

Diabetes, like any pre-existing condition, automatically makes you "riskier" in the eyes of the insurer. Diabetes is caused by having too much blood sugar, and it raises the risk of developing other health problems later in life, such as stroke, heart disease, hypertension, and kidney disease.

Although it is morbid to consider, life insurance companies issue policies and set rates based on expected mortality. Because diabetes carries a slew of risk factors, insurers protect themselves by raising rates and making it more difficult for diabetics to qualify for coverage.

5 things insurers look at

When you apply for life insurance, insurers will closely examine your diabetes and how you manage it. They will then use that information to determine whether or not to issue you a policy, which health class to assign you to, and how much to charge. They concentrate on five key factors:

1. Your age

Insurers look at two numbers:

• It's your age. Life insurance companies typically offer the lowest rates to young applicants, so it's a good idea to purchase a policy as soon as you need it.
• Your age when you were diagnosed with diabetes. The longer you've had diabetes, the higher your risk is. So, if you were diagnosed with diabetes as a 10-year-old decades ago, you will most likely pay more than someone your age with late-onset diabetes.

2. Type of diabetes

Type 2 diabetes accounts for 90% to 95% of U.S. cases, according to the CDC, and insurers are usually more lenient with this type. It is usually diagnosed in adulthood, and the symptoms are milder. Some people with Type 2 diabetes can manage it by living a healthy lifestyle, staying active, and taking medication.

Because Type 2 diabetics are viewed as less risky by insurers than Type 1 diabetics, you are more likely to be assigned to a better health class (such as Standard) and pay a lower premium.

Diabetes type 1 is less common. It is typically diagnosed at a younger age, and patients require insulin therapy to keep the condition under control. If you have Type 1 diabetes, you will most likely be assigned a lower health class (such as Substandard) and charged a higher rate. However, insurers view people with diabetes differently, so if you're otherwise healthy, you might be able to get a lower premium by shopping around.

Gestational diabetes is a temporary condition that can occur during pregnancy, and most insurance companies will evaluate your diagnosis and treatment in the same way that they do Type 1 and Type 2 diabetes. To avoid paying a higher premium, apply for life insurance before becoming pregnant or during the first trimester. Otherwise, it might be worth waiting a few months after giving birth before applying. Your diabetes may clear up during that time, and you may be able to get a better rate.

3. The seriousness of your diabetes

In order to determine the severity of your diabetes, insurers will use a blood test known as A1C to assess your average blood sugar levels. If the reading indicates that your diabetes is under control, you will be regarded favorably in comparison to someone with a higher reading.

An insurer may consider the results of a glucose tolerance test instead of an A1C in some cases. The closer your blood sugar level is to normal, the better for your life insurance application.

In addition to the tests, insurers will inquire about any diabetes-related complications, such as neuropathy (nerve damage) or retinopathy (retina damage). You will not be penalized automatically for having these conditions, but if it is clear that you are not managing them well, you will face higher premiums.

4. Describe how you manage your diabetes.

If you can demonstrate that you are taking steps to treat your diabetes, you will have a better chance of securing a policy and paying a lower premium.

The method of treatment differs. However, eating a healthy diet, exercising, taking an oral medication, and seeing a doctor on a regular basis are all good signs that you're trying to keep the condition under control.

5. Other health factors

In addition to those four major factors, insurers consider:

• The rest of your health history. High cholesterol, high blood pressure, and being overweight are all risk factors that can cause your rates to rise.
• Your family medical history. Your insurer will inquire about genetic conditions that may increase your risk of illness, such as renal and heart disease.
• Your alcohol consumption. Excessive alcohol consumption can hasten diabetes-related complications such as nerve damage and eye disease. As a result, your insurer may inquire about your alcohol consumption.

Choosing the right life insurance for diabetics

The best policy for you is determined by your budget and whether or not you want to take a life insurance medical exam.

The following are the primary options for diabetic life insurance:

Term life insurance

Term life insurance is the most affordable and straightforward policy, lasting for a set number of years — such as 10, 15, or 20. You'll need to fill out a health questionnaire and have a medical exam, so this option is best for people who have diabetes under control.

Whole life insurance

Consider whole life insurance if you want to treat your policy as an asset. It provides lifelong coverage and invests a portion of your premium each month to give your policy a cash value. Once you've accumulated enough cash value, you can begin borrowing against your policy.

Whole life insurance, on the other hand, can be five to fifteen times more expensive than term life insurance, and it usually necessitates a medical exam. As a result, reasonable rates or even coverage may be out of reach for Type 1 diabetics and Type 2 diabetics who are not receiving treatment.

Simplified issue or guaranteed issue life insurance

If your diabetes is advanced or uncontrolled, you may be able to obtain life insurance without a medical exam. Simplified issue policies still require you to fill out a health questionnaire, whereas guaranteed issue policies waive both the questionnaire and the medical exam. However, they are usually only open to people over the age of 50.

Because the insurer knows less about you, these policies are typically expensive and capped at low amounts, such as $25,000 or $50,000.

Group life insurance

People with diabetes can also obtain coverage through their place of employment. If your company provides group life insurance as part of your benefits package, you should take advantage of it — especially if your employer pays all or some of the premiums.

You will not be required to take a medical exam, but many employers will offer a policy that is only worth one or two times your salary. If you have financial dependents, debt, or assets to protect, you may want to consider purchasing supplemental life insurance to supplement your existing coverage.

Life insurance riders

Life insurance riders can be added to some policies to customize your coverage. These riders are worth considering if you have diabetes:

• Accelerated death benefit rider. If you are diagnosed with a terminal illness, you can access a portion of your policy's death benefit early.
• Critical illness rider. Allows you to withdraw a portion of your death benefit while you are still alive if you can demonstrate a critical or chronic illness.
• Waiver of premium rider. If you become disabled and are unable to work for an extended period of time, your premiums will be paused.
• Guaranteed insurability rider. Allows you to increase your coverage at a later date without having to take another medical exam or answer health-related questions.
• Term conversion rider. Lets you convert all or part of your term life policy to permanent coverage before a deadline, such as age 65.

Questions insurers might ask about your diabetes

When you choose a policy that requires a health questionnaire or physical, you can expect to be asked standard health, lifestyle, and family medical history questions.

Your insurer will also ask you specific diabetes-related questions. These could include:

• Do you have a specific type of diabetes?
• When did you get your diagnosis?
• Do you keep track of your own glucose levels?
• Do you use insulin, an oral medication, or a combination of the two? If so, you'll need to specify the number of insulin units you take per day, as well as the types of medication and dosages.
• What are your current dietary and exercise habits?
• What is your A1C level right now?
• What was your average A1C level over the last year?
• Have you had any other diabetes tests?
• Who is your doctor, and when was your most recent visit? Contact information for your entire care team, including primary care doctors and endocrinologists, may be required.
• Do you suffer from diabetes-related complications such as high blood pressure, blurred vision, blackouts, or kidney problems?
• Have you had any other serious medical conditions, such as coronary artery disease or kidney disease?
• Have you ever been in a diabetic or insulin-induced coma?
• Are you undergoing dialysis?

Your insurer may ask for documentation of recent test results, doctor's appointments, prescriptions, referrals, and hospitalizations. Bring any supporting documents with you when you apply to make the process go more smoothly.

The technician will measure your height and weight, blood pressure, blood glucose level, and HDL (good) and LDL (bad) cholesterol levels during the medical exam. An electrocardiogram, also known as an EKG, or a microalbumin test, which detects early signs of kidney damage, may be included in the exam.

The cost of life insurance with diabetes

Your insurer will assign you to a life insurance rate class based on your age, lifestyle, driving record, and the risk your diabetes presents. This determines your premium, or the amount you'll pay each month.

People with diabetes, on average, pay more for insurance than those who do not have diabetes. However, your premium may not be as high as you think, especially if you have Type 2 diabetes and manage it well. Some insurers may allow you to qualify for Standard rates.

Sample life insurance rates for diabetics

When InsuredCircle compared rates for a $500,000, 20-year term life policy, we discovered that coverage for diabetics can cost two to four times as much as coverage for a healthy person without diabetes.

The average premiums for Type 1 diabetics and Type 2 diabetics with uncontrolled diabetes were the same. Type 2 diabetics who manage their diabetes well, on the other hand, had rates that were at least 20% lower. This demonstrates how important your care is to insurers.

If you have diabetes and don't smoke, here's how much you can expect to pay per month for a $500,000, 20-year term life policy.

Tips to lower your life insurance rates

There are a few options for lowering the cost of life insurance with a pre-existing condition such as diabetes:

• Shop around. Diabetes is weighed differently by insurers, and some are more flexible than others. Compare life insurance quotes from a few different companies to ensure you're getting the best deal.
• Maintain control of your diabetes. Consult your doctor on a regular basis, take your medications, eat a healthy diet, and maintain an active lifestyle. When the time comes to apply for life insurance, you'll be able to demonstrate to an insurer that you're doing everything possible to manage it.
• Make use of a broker. Some brokers specialize in high-risk applicants and can assist you in narrowing your options and increasing your chances of approval.
• Examine insurers that offer wellness programs. For example, John Hancock's Aspire program is intended for diabetics. It rewards you with a premium discount of up to 25% for eating healthily and staying active.