Last Updated on December 11, 2024
Shopping for life insurance with Diabetes? You probably have many questions, like “How do I know which policy to choose?” or “what company should I go with?” or even “can diabetics get life insurance?” Having a conversation about life insurance is never a pleasant topic, but it’s an extremely important one.
Unfortunately, having diabetes makes ‘shopping for life insurance’ a little more challenging. And when you first go on the internet, you’ll see so many sites, and advertisements, your head will spin!! Sadly there is a lot of misinformation when it comes to life insurance and diabetes. Simply stated, many websites will provide fake or misleading life insurance information.
We’ll warn you that websites like Fidelity Life, Investopedia, Value Penguin and several others simply provide false information when it comes to life insurance and diabetes. Their articles are written by people who have NO life insurance background, nor do they have any insight into which companies are best for people with diabetes. Companies mentioned on their website simply pay them money to advertise. Don’t get tricked by websites like this, as it’ll lead to you over paying for life insurance.
This is an important decision that can impact you and your family’s future, even after you are gone. Whether it’s your first time buying life insurance or not, everybody should know these important tips when shopping around for the right diabetic life insurance policy. Below are some tips we’d like to share if you have Diabetes and are searching for life insurance.
Quick Article Guide
Here’s what we’ll cover in this post:
Why Do I Need Life Insurance?
When you first begin looking into life insurance, please ask yourself this question. The answer will be a GREAT first step for you, into determining what type of policy is ideal for you. Everyone’s financial situation is different, so there isn’t any ONE type of life insurance policy that fits everyone’s needs. Perhaps you are a new parent, and life insurance is an extremely important financial product for your growing family.
When shopping for life insurance, you will hear many different terms and you should know what they mean. It’s important to learn the basics, such as the difference between term life insurance and whole life (permanent) insurance.
+ Whole Life Insurance
Protects you until the day you die. When you pass away, your beneficiary will collect your death benefit. However, whole life insurance policies are one of the most expensive types of permanent life insurance, available to the diabetes community. For certain individuals, whole life insurance policies are a perfect fit.
+ Term Life Insurance
With term life insurance, you are only covered for a particular period of time. If you live longer than a term life insurance policy specifies, the policy becomes invalid and nobody receives your death benefit. You can either purchase another term policy or choose to live without life insurance at that point. While term life insurance will not cover your complete life, it will provide the lowest priced option for you initially. Many people take out multiple term life policies, to address various financial needs.
Generally, younger consumers may want to consider taking out term coverage, and also a form of permanent life insurance. This strategy can help provide the proper amount of life insurance for your family today, and lock in permanent coverage at rates that would be much cheaper than if you waited into your 50’s or 60’s to secure permanent life insurance.
We’d also like to point out you are NOT restricted to just one type of policy. Many people may need term life insurance, and a permanent life insurance policy. Don’t let all this sound confusing. Contact us, and our agents will work with you to help determine what policy, or policies are in your best interest. Depending on your financial budget, you may need to start with a term life insurance policy initially, and eventually purchase a permanent policy at a later date. Everyone’s financial situation is unique, and the life insurance strategy that’s best for your situation will be different than your neighbors.
Understand that Life Insurance with Diabetes May Cost More
Having a chronic disease such as Diabetes doesn’t mean you’ll automatically be declined for life insurance. However, life insurance companies are going to make offers of coverage, based on your Diabetes history, and control of Diabetes.
If you have type 1 diabetes, chances are your policies will be higher priced, compared to people with type 2 diabetes. Life insurance for type 1 diabetics isn’t impossible to obtain, but in terms of life insurance carriers, you’ll be limited. Most type 1 diabetics will receive offers 25% to 50% higher priced, compared to non diabetics. All life insurance companies will view your health differently, so it’s important to work with agencies like Diabetes 365, to help you find the best carrier for you. Use our expertise to help you find the most competitively priced policies available to you.
People with type 2 diabetes tend to receive better rates compared to people living with type 1 diabetes. Not only that, but there’ll be many more options available. Several companies will offer no medical exam life insurance coverage to type diabetics. Most people with type 2 diabetes will pay life insurance rates, similar to people without diabetes. Standard rates are easily obtained. And depending on your overall health profile, some companies will offer Preferred rates! Depending on your A1C history, and overall health profile, you should have several life insurance companies to choose from.
Work With Specialists Who ONLY Work With Diabetics
Having diabetes, and searching for life insurance will require just a little more work. Several websites out there advertise ‘fake’ quotes to people with diabetes. Or most importantly, they don’t understand how to work with the diabetes community!!! Sadly, applying with the wrong company or agent can lead to a decline in coverage, or higher rates.
You need to work with agents who SPECIALIZE in life insurance with diabetes. We know all the tips to help you get the most competitive rates! This could be the difference in getting approved or declined all together. Or this could help save you THOUSANDS of dollars over the lifetime of the insurance policy.
Many agents are not properly trained. That’s why Diabetes 365 was created, to assist you and your family in obtaining the proper coverage. We work with all the major life insurance carriers, and most importantly have ‘special’ relationships with these underwriters. This helps us insure that we can get the best possible life insurance offers for your clients. Depending on your overall health profile, and control of Diabetes, we’ll be able to recommend the best life insurance companies for your current situation.
Life insurance is not a quick, frequent purchase. Don’t think that you are going to shop and sign with a life insurance company in a day. It is vital to get quotes from multiple life insurance companies and compare their offerings. Good news is, we do all this for you!!!!
We will educate you, and explain what each policy entails, and the differences between them. With doing this, you can ensure that you are going with the policy that suits your needs the best and also has the best possible rate. You don’t want to be stuck with a policy that you cannot afford or isn’t right for you. When working with us, you’ll receive real and accurate life insurance quotes. We will not bait and switch you like other websites such as Policy Genius and SelectQuote do. Do not get tricked by websites like this showing you unrealistic life insurance quotes.
Determine How Much Coverage You Need
Having the right amount of life insurance is a must! But how do you calculate the amount of life insurance you need? Don’t be afraid to try to compute some numbers yourself. You are the person who knows your own financial situation the best. We are also happy to assist, and to ‘brainstorm’ with you.
We understand that the amount of the life insurance premiums will help dictate how much life insurance you can comfortably afford. And since diabetics tend to pay higher rates, you may not be able to afford as much life insurance, as you’d like. However, when working with agencies like Diabetes 365, we’ll work with you, and help you find the lowest available policies!!
A common but outdated method is the rule of 10. This means to multiply your income by 10, and that tells you how much life insurance you need. In our opinion, this amount would be the MINIMUM amount of life insurance you’d need.
Other ways to calculate an amount of coverage, is to add up your debt, (college loans, mortgages, credit card debt) factor in the cost of raising your children and higher education for them, as well as the number of years you’d like to replace your income. You may even want to factor in if you’d like to leave any life insurance proceeds to charities. IF that’s the case, you would want to add this amount to the total.
No one has the same needs and amounts, so it’s tough to throw out advice just recommending one amount of coverage. If you are unsure of the right amount of life insurance, just give us a quick call. We’ll be more than happy to work alongside you.
Life Insurance is for Protection; Not An Investment
Life insurance should not be looked at as the same kind of investment as a mutual fund. Term insurance provides protection only, without a savings component.
Whole life (permanent) policies do accumulate a cash value over time that can be borrowed against or withdrawn, if needed, but hold many restrictions regarding when the money is actually available to you. If you borrow against the cash value, you may also be charged interest, depending on the situation and individual policy.
Other types of insurance policies, such as Indexed Universal Life, offer in addition to a death benefit, an accumulated cash value account. According to Investopedia, Indexed universal life (IUL) allows the owner to allocate cash value amounts to either a fixed account or an equity index account. Policies offer a variety of well-known indexes such as the S&P 500 or the Nasdaq 100. IUL policies are more volatile than fixed ULs, but less risky than variable universal life policies because no money is actually invested in equity positions. While certain life insurance policies can accumulate cash value, they are NOT actually investments. The main feature of every life insurance policy is to provide a specific level of protection for your family.
Check Out The Benefit Riders For Each Policy
Policy benefits riders, or benefit add-ons differ in each policy. Some riders come standard, while others cost a premium. Comprehending different policy riders such as an accelerated death benefit rider, child rider, waiver of premium rider, etc., may help you determine if paying a little bit more for a policy that comes with built-in benefits is worth the extra cost.
Do not buy any extra riders until you fully understand what they mean and if you actually need them.
For example, if you are diagnosed as terminally ill, the accelerated death benefit rider lets you access your payout. It might include a life expectancy of 12 months or less, but pay attention because the rules of each plan differs. It may be included with your policy or you may be charged additional fees.
Many riders are available to people with diabetes. Again, don’t feel like you are on your own, when it comes to these issues. We are here to assist, and to recommend suitable riders for you. We love finding diabetes clientele life insurance policies with living benefit riders that are offered at NO EXTRA cost to you. If you’re a consumer, wouldn’t you love to have life insurance with ‘free’ terminal, critical, and chronic illness riders?
Many riders are available to people with diabetes. Again, don’t feel like you are on your own, when it comes to these issues. We are here to assist, and to recommend suitable riders for you.
Diabetics have nearly all the same options when it comes to life insurance, as people without this disease. The problem is, the diabetes community is going to the wrong websites to find information, and are being mislead. Don’t make this mistake. Diabetes 365 was founded to assist diabetics through the life insurance process. To receive information, simply do an inquiry, or give us a quick call.
Final Thoughts
Let us do all the ‘hard work’, on your behalf. An agent will discuss all the options that you’d have available. WE make the entire application process a ‘breeze’ for you! Finding life insurance with any type of diabetes doesn’t have to be difficult when working with an agent who’s knowledgeable.
Having a form of diabetes does make obtaining life insurance ‘slightly’ more challenging. This is due to NOT being able to qualify for Preferred Plus rates that are advertised to the masses. It’s important to have realistic expectations as you begin the application process. By this we mean that you’ll most likely pay higher prices for life insurance and not qualify for all the policies that people without diabetes qualify for.
We love working with the diabetes community to help secure the best possible life insurance policy. Let us earn you trust,and help you out. We’ll make the entire application process as easy as possible. Contact us today and let us go to work for you and your family.
