Being a diabetic means that you have to be aware of your blood sugar level at all times. You have to keep an eye on your diet and make sure you exercise in order to stay healthy and fend off any diabetic complications.
This is the best case scenario. But let’s face it. Diabetes is a tough disease. It takes a lot of responsibility and management to keep your blood sugars in a normal range, when your body is not doing what it normally would do.
If your glucose levels have been higher than normal and your body has developed diabetic complications over time, then your life insurance options will narrow.
If you have poor blood sugar control, which is an a1c of 8.5 and higher, depending on the company, then your only option to obtain diabetic life insurance coverage could be through a graded policy.
When you’re shopping around for life insurance, there are dozens of factors you need to consider to ensure you have the best plan possible. Life insurance is the best safety net you can every buy for your loved ones. If you have diabetes, you might be concerned about being rejected for coverage or how much you’ll pay for your plan. This article is going to look at some of the options for your insurance coverage.
What Is Graded Life Insurance And How Does Being Diabetic Factor In?
A graded life insurance policy is permanent whole life insurance that is designed for those who can’t qualify for traditional or “regular” life insurance.
One feature of this kind of policy is that it has a two to three year waiting period. This means that if you have coverage, the death benefit will not pay out in full until that waiting period is over. For example, let’s say you obtain a $50,000 graded life insurance policy at age 57, and it has a two year wait period. If you die, whether from diabetic complications or not, the policy will not pay out $50,000 to your beneficiaries.
The amount of money that is paid out will depend on the stipulations on the policy. Some companies will pay out only a percentage, while other companies may pay out a return of the premiums that were paid into the policy.
Another feature of this policy is the cost – it is much higher than a traditional policy.
If I Can’t Qualify For Traditional Coverage Should I Get A Graded Policy?
Although having a life insurance policy in force can provide peace of mind and protection in the event of death, the cost is something to consider if you are faced with the option of getting graded life insurance.
It’s important to understand that a graded policy is more expensive and you are limited on the amount of coverage you can obtain.
You may only be able to get a maximum of $25,000 to $50,000 and the rate will be twice as much or more.
This is something to consider if you have diabetes and you have been declined for a traditional policy. Don’t jump on the next best thing (or the next worst thing depending on how you look at it). It may not be a wise choice financially.
Is It Possible to Qualify for a Better Policy?
If you are unable to qualify for a traditional policy, then make sure you have explored all other options and avenues before you go for an expensive and limited graded or guaranteed life insurance policy.
If your a1c is high, then research ways to lower it. This is a long-term approach, but it is not unreasonable to bring your a1c down in 3 to 6 months if you make some meaningful change in your diet and lifestyle. If you don’t know where to start with this, then there are tons of resources on the net, or you can get some excellent books about diabetes online. Here are two that I recommend: The End of Diabetes and Dr. Neal Barnhard’s Program for Reversing Diabetes.
Keep in mind that I have a son with type 1 diabetes and, although it is different, than type 2 diabetes, there are a lot of similarities.
Another thing to explore is whether or not you have been applying with the right policies and the right companies. Many times, I see that someone with diabetes who has a certain a1c and other risk factors, gets declines because they didn’t apply to the best company for their particular situation.
This is why I repeat over and over again how important it is to work with an independent agent.
No Medical Exam Policy For Diabetics
One option for applicants diagnosed with diabetes is to buy a no medical exam. As you can guess from the name, these plans will allow you to get insurance coverage without being required to take a medical exam. This is a great option for anyone in poor health or someone that has been declined for insurance coverage in the past. There are several advantages and disadvantages to these plans that you should take note of when you’re looking to get life insurance coverage.
Two of the best advantages of these policies is that anyone can buy one, and that you can be approved for coverage much quicker than a traditional policy. If you’re looking to get life insurance quickly, a no medical exam is going to be one of the best options. Instead of having to wait several weeks to be approved, you can get life insurance in a matter of days.
Some of the biggest drawbacks of these plans are the premium prices and the limit on the coverage. Because there is no medical exam, the insurance company is taking a greater risk, which they are going to offset by charging you higher monthly premiums. If you want the cheapest coverage, it isn’t going to be a no medical exam.
Additionally, you may be limited on how much life insurance protection that the insurance company will sell you through a no medical exam plan. Most insurance companies will only sell you around $250,000 worth of coverage without taking a medical exam. For most families, this isn’t going to be enough life insurance, which means that you’ll have to buy two plans.
Before you purchase a no exam insurance plan, take the time to calculate how much life insurance your family needs if something tragic were to happen to you. There are a few categories you should consider calculating your life insurance needs. The first number is your debts and final expenses. This will include your mortgage, student loans, and any other major bills. The next number is your paycheck. Your life insurance plan should be large enough to replace your annual income for anyone who relies on it.
An Independent Agent Has Access To Many Options
If you narrow your focus to one company, then it makes sense that your options are very limited.
This is essentially what a lot of diabetics do – they pick one company from the internet or wherever, and they choose to apply with that company, for whatever reason.
This is not a good strategy to employ if you are diabetic and you need life insurance. The problem is every insurance company is different, and all of them have different medical underwriting and rating systems they use. That means you can get different quotes with various companies. Getting only one quote is like buying the first car you see. If you only get one quote, you could pay hundreds of dollars too much for your insurance policy.
You should always work with an experienced, independent agent who works with a lot of companies, and who has experience with diabetic applicants. If you are open and honest with your agent then he or she can guide you towards the best company for you, based on your health and the underwriting criteria of that company.
Get connected with an independent agent today by filling out the simple quote form at the top of the page.
Improve Your Rates And Insurance Premiums
When you apply for life insurance coverage, the insurance company is going to look at dozens of different factors to decide how much risk you are to insure. We mentioned all of the diabetes related information that the company is going to look at when you apply. Above we showed the importance of working with an independent insurance agent, which is going to raise your chances of getting an affordable plan, but that’s not the only thing that you can do.
One of the biggest factors that they are going to look at is your tobacco usage. If you’re listed as a smoker on your application, you can expect to pay much higher premiums for your coverage. Coupled with your diabetes diagnosis, your tobacco could cause you to be declined for insurance coverage. If you want to get an affordable plan, you’ll need to kick those cigarettes to the curb once and for all.
Another way that you can save money is by improving your overall health. Before the insurance company approves your coverage, they are going to require that you take a medical exam. The results from the medical exam are going to play a significant role in how much you pay for your life insurance plan. If you want to save money, it’s time to start getting exercise and stick to a diet. Both of these can help you manage your diabetes, lose weight, lower your cholesterol, lower your blood pressure, and reduce your risk of being diagnosed with health complications.
One lesser known way of saving money on life insurance is to be a safe driver. During the application process, the company is going to review dozens of factors to determine how much they are going to charge you, and one of those is your driving records. The companies will pull your records from the DMV. If you have several speeding tickets or accidents on your record, the insurance company is going to view you as a high-risk applicant. If you want to get lower premiums, slow down on your way to work every day.
Life Insurance With Diabetes
Life insurance is one of the best investments that you’ll ever make for your loved ones. If something tragic were to happen to you, your insurance plan will ensure that they have the money that they need. If you’re an applicant with diabetes, we know that finding an affordable plan can be overwhelming, but it doesn’t have to be. Our agents can help walk you through the process, calculate how much life insurance you need, and point you in the direction of the best type of plan. There are several types of plans you can choose from, each of them has various benefits and coverage advantages. We can help you sift through all of the plans and give you the perfect plan for you.
Because you never know what’s going to happen tomorrow, you shouldn’t wait any longer to get the insurance coverage that your family deserves. If you have any questions about getting life insurance with diabetes, please contact one of our agents today. We have years of experience helping people with diabetes get quality and affordable life insurance coverage. It’s our mission to give your family the protection that they will need.
Without an independent insurance agent, you could spend hours and hours researching companies or talking to agents on the phone. Instead of wasting your valuable time, let one of our experienced agents do the work for you.