Many sufferers of type 2 diabetes believe that their condition means they are excluded from life insurance cover. Life insurance is the simplest way of protecting your loved ones in the event of your death, and those with type 2 diabetes can certainly secure life insurance policies.
For type 2 diabetics, there are likely to be a number of important differences between the kinds of policies available to them and available to those without any pre-existing conditions. But that does not mean life insurance does not remain a cost-effective way for type 2 diabetics to provide for their loved ones in the event that they pass away.
The main thing you need to be aware of in terms of your type 2 diabetes when looking at life insurance policies is that most policies require a medical assessment at point of application. This will determine a number of things about your health, including pre-existing conditions such as type 2 diabetes.
In the worst case, some providers may decline your application. This is not common, but you should be aware that it can happen. The majority of providers are much more likely to accept you, but with inflated premiums.
This is the main difference you’ll need to be prepared for. From a provider’s point of view, type 2 diabetes can indicate an unhealthy lifestyle. Often it is caused by a lack of exercise or being overweight. Their initial medical evaluation is essentially a risk assessment: they are determining the risk you pose and how likely it is that they will have to pay-out early into your policy.
There are a number of factors that will be taken into account when the provider is calculating your monthly premium. Commonly requested information includes most recent blood sugar readings, any medication you are taking, the age at which you were diagnosed and your BMI. This, as well as the standard questions asked about smoking status and medical history, will all go together to calculate your premium.
This may seem daunting, and like it could have a very great effect on your premium. There is no need to worry, though. You can still qualify for many competitive policies, and when it comes to type 2 diabetes, one of the best ways you can keep your premiums lower is by demonstrating what you are doing to improve your overall health.
Maintain a log of your daily activity and how your diet and exercise are designed to keep you healthy. Providers will take this into account.
Type 1 diabetes is not much different in terms of how it can affect your policy. Again, from the provider’s point of view, you are at greater risk of life-threatening conditions, and so you will pay a higher premium. Again, many individual factors will be taken into account, but it is naturally not possible for sufferers of type 1 diabetes to manage their condition through lifestyle.
As a type 2 diabetic, then, you have much greater control over the cost of your life insurance, by living a healthy lifestyle.
So, as a type 2 diabetic, or indeed anyone, why is life insurance right for you? There are many reasons people opt to take out life insurance cover, though they are all, broadly speaking, financial. Life insurance policies will provide a lump sum pay-out in the event that you pass away, which will be passed on to your loved ones.
The most common reason life insurance policies are taken out is to cover the cost of a mortgage. Think about your situation. If the worst were to happen, would your family be able to cover the cost of your home? If your home is covered, consider the costs of your funeral, or even an inheritance for your loved ones.
There are several basic kinds of life insurance. As a type 2 diabetic, there are a couple of primary options for you.
We compare plans from the leading life insurance providers
The most common form of life insurance is known as term life insurance. With type 2 diabetes, obtaining a term policy will not be as simple as it otherwise would, but it is still more than possible.
Term life insurance provides cover over a specified period of time, and if you pass away during the policy term, the pay-out will be made to your loved ones. It can be a level or decreasing sum, meaning that the pay-out will remain the same over the course of the policy or it will decrease over time, usually in line with your mortgage.
For a term policy, you’ll be required to provide medical information during the application process. Your policy may therefore be manually underwritten based on your specific circumstances, or it can even be declined. There are many options available, though, so comparing providers is always the most sensible choice.
Depending on your needs, and what you want to be covered for in the event of your passing away, an over 50s plan may suit you better. These plans cover anyone in the UK aged 50-85, and will accept you without requiring any medical information. If you were wishing to obtain a policy without disclosing your type 2 diabetes, an over 50s plan could suit you.
Naturally, there is a lot of added risk for the provider in these cases. Typically, over 50s policies come with a waiting period of 1-2 years at the beginning of the plan, during which time you will pay premiums but will not receive a pay-out on your death. Your premium payments will be refunded, however.
Over 50s plans are typically capped at a pay-out of £25,000. So, again, it’s really important to assess what your financial needs would be in the event that you were not around anymore. Obtaining quality cover as a type 2 diabetic is entirely possible and you should not let your condition get in the way of protecting your family, but you will need to assess your requirements before choosing a policy.