In recent times due to increased uncertainty and higher incidents of mortality owing to various diseases, the need for life insurance has become important in the list to must own by people with families. Life insurance provides the much required assurance. However, if you are a diabetic, you might find it highly expensive to cover your disease. According to the state laws in US, the life insurance firms are entitled to set higher premiums incase they provide you the cover. Besides this life insurance firms can deny a person of the life insurance cover, based on their health condition.
There is no suitable product which might apply for all the diabetics, the availability of the diabetic products of life insurance vary for different types, severity and health condition. Besides this several other factors are taken into account, such as, lifestyle, gender, age and the medications taken by the individual to control the disease.
Even, the insulin dependents find it extremely difficult to get the right insurance cover on their preferred rates.
Why is life insurance expensive for people with diabetes?
Diabetics find shopping for life insurance slightly expensive than normal individuals because, such individuals are at greater risk of mortality than a normal person. Another deciding factor that sets the price of life insurance for people suffering with diabetes is the type of diabetes and the medical condition. If you suffer with lower glucose blood levels, lead a good and healthy lifestyle, you probably will find it easier to afford a life insurance cover at a reasonable rate.
Complications arising out of diabetes are as follows:
- Failure of kidneys.
- Nephritis
- Heart failure
- Hemorrhage of brain and nerves
- Strokes
- Liver infection
- Other general infections in the body
- Degeneration of limbs, leg, fingers, arms etc.
Thus the mortality rate of the people with diabetes is increased; thereby putting these individuals in high risk category.
I have diabetes, what rates of insurance can I expect to pay?
The general rule of thumb is, since you do not belong to the normal and healthy individual category, you can not expect to pay “preferred” rates for your insurance premium. The rates might vary from insurer to insurer and also your health conditions. However, you can expect to pay “standard” rates if your diabetes is not very degenerative. In any case the rates of insurance will be at least 25% to 200% higher than the normal rates of insurance subject to following factors which are necessarily considered by every insurer in states while setting up the insurance rates for people diagnosed with diabetes.
Factors considered for underwriting life insurance in case of diabetes:
Several factors are taken into account while underwriting for diabetes. These factors are as follows:
- Age of the onset of diabetes: your age is an important consideration that decides the complexity which might arise out of diabetes. If the diabetes onset happens at an older age (preferably 50+) will lead to a better rate.
- Level of control by hbA1c rate.
- Health complications resulting due to diabetes, such as neuropathy, retinopathy, and heart disease.
People with hbA1c rates of 6.5 are at lower risks of developing complications due to diabetes and thus can expect better rates of life insurance quotes given by their insurer.
Tips to purchase life insurance for diabetes:
If you are suffering with diabetes and are planning to shop for an insurance product, it is important to follow the following tips for taking a smart decision.
- Get quotes of insurance by multiple insurers: Due to increasing number of insurance providers, the prices might vary from one insurance carrier to another depending upon the policies and rules. You can expect a difference of mind boggling 50% in some cases. Thus, it is wise and intelligent enough to get quotes from multiple insurance providers.
- Do check the ratings of the insurers, and prefer buying the insurance from firms rated above B+ rating so that you end up buying the product which is proved in maintaining the quality of service and claim settlement process. Best insurance firms are with A, excellent or better ratings by A.M. The firms with lower financial rating do not provide a speedy settlement of the claims owing to their low financial standing, thus making you vulnerable to insurance hassles.
- Get review period: Get the review period so that you can cancel the insurance in case you are not satisfied after purchase of a policy with full refund of the premium amount, within a limited time frame. Moreover, this review period helps you in shortlisting the firm which will provide you the personalized service with minimum rates applicable for your insurance premium.
- Compare premium payment options: compare the premium payment options and rates for monthly, quarterly, half yearly or annual basis and choose the one which lets you pay the minimum amount. Usually the payment of premium is lower in case of one lump sum annual premium payment rather than multiple monthly annuities.
- Length of term option: choosing the length of the term in case of term insurance is important. The length of the term should depend on your age, type of diabetes, and the health condition.
Although, the options available to diabetic individuals are less, besides exceedingly higher premium rates, having a policy to cover your life is better than being uninsured, thereby saving your beneficiaries and families the problems they might have to face in the event of your death. Make sure you buy a policy which is comprehensive and functions more or less like a normal life insurance policy, in terms of settlement of claims and reimbursement of the policy amount. Another important thing is to check the claim settlement procedure along with the rates and other costs charged by the insurer for insuring you. Due diligence before buying the insurance, is far better than ending up with an insurance policy which is full of hassles.
