Getting declined for term life insurance is a bummer, but don’t stop your search after getting turned down for a policy. This only leads poor financial protection in the event of your death and it brings unnecessary stress and uneasiness because when you don’t have life insurance and you really need it, it will continue to bug you because your financial house in order.
Life insurance is one of the best safety nets that you can ever buy for your loved ones. It’s the best way to know that your family will have the money that they need if something tragic were to happen to you. Finding the perfect life insurance plan can be difficult. There are several different kinds to choose from and thousands of different plans. After that, you’ll have to go through the application process, which can be even more stressful.
If you’ve been declined for a diabetic life insurance policy, then it is important to pick your boot straps up and start fresh. Find out why you were declined, work with an independent agent to research a better strategy, and try again.
Read more to learn about possible reasons you were declined and how you can move on to get a policy after you’ve been turned down.
Find Out Why Were You Declined
The first thing to do if you’ve been declined for life insurance is to find out why. Ask your agent or inquire with the company. Get as much detail as possible because this will assist you when you reapply with a different company. It is important to have a strategy as you move forward, so you don’t waste your time and energy to get the same results.
What Happens When You Are Turned Down
Ever heard of the Medical Information Bureau? Most people haven’t.
When you apply for life insurance with diabetes, or any other health concern, the insurance company will check your medical history through the MIB. This is an information warehouse with detailed records about your health and health history. The information from the MIB, along with your application, and medical exam results, are used to determine whether you qualify for a policy or not.
When you apply for a policy and you don’t qualify, or you don’t qualify under the terms that you applied for, then this denial or rating is noted on your MIB report. So when you go elsewhere to apply, the other insurance company will see this history.
That’s why you shouldn’t go on an application frenzy, hoping that one of them will get approved. Not a good strategy.
It’s just like your credit report. Every time you apply for credit, there is an inquiry on your report. The amound of inquiries gets factored into the mystery algorithm that banks use to assess your risk. Your many inquiries will be viewed as risky.They might want to know why you’ve been applying for so much credit?
Perhaps you have a denial on you MIB report, other insurance companies will want to know why. The company will ask If the other company didn’t approve you, then why should we?
You May Have Picked The Wrong Company
One reason why diabetics get turned down for life insurance is that they just applied with the wrong company. Every insurance carrier has unique criteria that they use to underwrite an application for coverage.
Some companies are more favorable to type 2 diabetics with good control, while another carrier may lump that same person in with a diabetic with average control.
One company may deny all type 1 cases, while another company may offer standard rates to a type 1 diabetic with good control, depending on the circumstances.
The key to obtaining a life insurance policy with diabetes is understanding the underwriting criteria of insurance companies. Often times, you get turned down because you just didn’t fall in line with the standards for the company’s health rating. In this case, it takes some research to find a company whose parameters are within your reach.
If Your A1C is High, You Are Viewed as High Risk
Another reason for life insurance denials to a diabetic is a high a1c.
As a diabetic, your blood sugar control is the most important aspect of staying healthy and avoiding long-term complications. The day-to-day work it takes to keep your blood sugar stable is what will show when your insurance company checks your a1c.
If you’ve been diligent about monitoring and stabilizing your glucose levels, then your a1c will be in a good range.
If your blood sugars have been high, your a1c will tell on you.
Because high blood sugar leads to serious long-term complications, insurance companies use this measurement to assess whether you qualify for life insurance or not. In many cases when a diabetic gets turned down for life insurance, it is because their a1c is high. Learn more about tips on how to improve this.
The acceptable a1c range for each company differs, which is why it is important to do your research and have a strategy for how you apply – which company is most favorable in my situation?
Do You Have Long-Term Health Complications?
Diabetes often leads to health issues such as heart disease, stroke, neuropathy, and retinopathy. This can also develop into kidney failure, amputation, or even blindness. If you fall into this category, then it is unlikely that you will get approved for a traditional life insurance policy.
It would be more favorable to research a graded or guaranteed life insurance policy. These policies are different than traditional policies because of the coverage terms, coverage amount available, and the rate you pay, but it may be a last option for you if you have serious health issues that prevent you from obtaining a policy elsewhere.
Improving your Chances for Affordable Life Insurance
When you apply for life insurance coverage, the insurance company is going to look at dozens of different factors, your diabetes diagnosis is only one of those factors. There are several ways that you can improve your chances of getting approved for an affordable and quality insurance policy.
The first thing that you should do is eliminate any tobacco that you currently use. If you’re a diabetic and a smoker, you’re going to pose a much great risk to the insurance company, which means you’ll be facing higher premiums or a greater risk of being declined for coverage. If you’re wanting to get the most affordable plan and drastically decrease your risk of being declined, you’ll need to kick your bad habits once and for all. As a diabetic, you’re already consider a high risk applicant, coupled with smoking, you’re a very high risk to insure.
The next thing that you should do is improve your overall health through diet and exercise. Both of these are going to help you lose weight, control your diabetes, and reduce your chances of being diagnosed with other health complications. Having a clean bill of health is going to give you an excellent chance of being approved for a plan.
Work With an Independent Agent
Remember, if you have diabetes and you are looking for insurance coverage work with an experienced, independent agent. The reason is simple – Some companies will add 50% to 100% extra to your life insurance premium just because you are diabetic, while there are other companies that will offer preferred rates if you meet the criteria. The difference between the two means hundreds, if not thousands of dollars in savings.
An independent agent works with many companies and can guide you to the one that is most favorable for you based on the type of diabetes you have, your age of diagnosis, your a1c, and any health issues you have.
If you have diabetes and you need term life insurance, then we provide a connection to independent insurance agents who have access to dozens of companies, and know which companies have the most favorable rates for type 1 and type 2 diabetes. If you need a quote, just enter your information into the form on this page to get started.
Getting the perfect life insurance can be a frustrating process, especially if you have diabetes. If you’ve been declined for coverage in the past, don’t assume that you can’t get an affordable plan. Regardless of your health or any pre-existing conditions, there are several options for quality insurance coverage. Not having life insurance is one of the worst mistakes that you can make for your loved ones. Working with one of our agents is the best way to get the insurance coverage that your family will need. Don’t wait any longer to get the process started, contact one of our agents today.
If you have any questions about life insurance for people with diabetes or about the other insurance options available to you, please contact one of our agents today. We have years of experience working with applicants with diabetes and we know which companies are going to give you the best policy to meet your needs.