life insurance payout

Matthew Lang

Matthew Lang

Updated 15/04/2021

If diagnosed with Type I or Type II diabetes, your ability to obtain life insurance may be impacted as insurers are concerned about the impact on your health.

life insurance payout

Life insurance for type 1 & type 2 diabetics


Diabetes is a condition that can be managed, but not generally cured.

If you are diagnosed with Type I or Type II diabetes, this condition can affect your ability to obtain life insurance because insurers are concerned about the impact the diabetes will have on your health.

While getting insurance is not impossible, it may be more expensive.

It can be especially difficult to get coverage for trauma, for income protection, and for total and permanent disability (TPD) after a diagnosis of diabetes.

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Can diabetics get life insurance?

Life insurance is available to diabetics.

However, the premium costs are going to be higher from most providers to take into account the added risks.

Diabetics have a higher risk of mortality at a younger age as a result of complications from their condition, and life insurance providers will generally consider the added chances of a policy payout when pricing a policy.

Some life insurance carriers impose more significant premium increases for diabetics than other policies do.

There are insurance companies that specifically target diabetic patients and that try to make the policy premiums as close as possible to those that are paid by non-diabetic policyholders.

It is important to shop around, compare policies and coverage, and make an informed determination about what insurer is going to offer you the best option.

What if you have life insurance already and are diagnosed with diabetes?

If you have a guaranteed renewable life insurance policy, your insurer cannot cancel your policy as long as you continue to pay premiums and as long as you were honest in your disclosures before obtaining coverage.

The ability to have and maintain coverage even after being diagnosed with conditions like diabetes is one of the reasons it is so important to buy health insurance when you are young and healthy.

How does diabetes affect you when shopping for a new life insurance policy?

Diabetes will cause premiums to be higher when shopping for life insurance.

A life insurance provider may ask you to undergo a medical examination to determine if your diabetes is well-controlled before issuing a policy.

Your insurance provider will likely also ask for information about your latest HBA1C result; about current medications you are taking; and about your height and weight.

What factors affect how your diabetes will impact your eligibility for life insurance coverage?

There are four key factors that will affect how your diagnosis of diabetes affects your ability to obtain life insurance coverage.

The first factor is the type of diabetes.

Type 1 diabetes is often a more serious condition over the long-term as compared with Type 2 diabetes and insurers may price policies higher for Type 1 patients.

Your age at diagnosis is another key issue, because you are likely to experience more complications if you were diagnosed with diabetes at a younger age.

Finally, the last two relevant factors include how well controlled your diabetes is, and whether you have already developed any complications associated with diabetes.

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What information do you need to provide when applying for life insurance with diabetes?

You will typically be required to complete a special diabetes questionnaire when you apply for life insurance with diabetes.

You may also need to undergo a medical examination including a chest X-ray and EKG to determine your health status.

Can you qualify for trauma insurance, income protection insurance, or total permanent disability insurance?

These types of coverage are often sold in conjunction with life insurance that pays out a death benefit.

These policies can provide you with protection if you become unable to work as a result of a serious medical problem.

You can buy peace of mind knowing you will be taken care of and be able to have your bills covered if you develop a covered condition.

For diabetics, however, qualifying for these types of policies can sometimes be difficult.

While most diabetics can find life insurance coverage (albeit at a higher cost), you can typically only qualify for these added types of protections if you can demonstrate that your diabetes is very well controlled.

You may also have a longer waiting period before your benefits become active when you purchase these policy types, as compared with someone who does not have diabetes.

Must you disclose diabetes when you apply for insurance?

You are required to disclose that you have been diagnosed with diabetes when you apply for any type of life insurance, trauma insurance, TPD insurance, or income protection insurance.

A failure to disclose that you have diabetes can result in your policy being retroactively cancelled and the insurer denying benefits.

An insurer can obtain information and discover your diagnosis through a medical examination and through a review of medical records and insurance information.

How should you find the best deal on life insurance for diabetics?

To find the best deal on life insurance for diabetics, shop around and get quotes from different providers.

You can look for policies catering specifically to diabetics, but do not restrict yourself only to applying for these policies.

Compare premiums, policy benefits, limitations, and coverage limits in order to find the policy that is the best deal for you overall.

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This guide is of an informative nature only and not representative of Compare Club products. It should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

Matthew Lang is the general manager of life insurance at Compare Club. Matthew leads a team of dedicated professionals who are passionate about helping individuals and families make informed decisions about their life insurance needs. Whether it's finding the right coverage for your specific circumstances, comparing policies, or optimizing your existing policy, Matthew and his team are here to provide expert guidance and support.

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Matthew Lang

General Manager of Life Insurance