Life Insurance for diabetics

Life Insurance for Diabetics

If you or a loved one have diabetes, or even higher than normal sugar levels, you may have had problems getting life insurance, or at least a life policy at a good price.

Obtaining life insurance for diabetics can be challenging, but if you get yourself a good broker that understands this disease, you can come out ahead of the game, just Click here to schedule a 15 minute consultation with Ned

A lot of insurance companies will rate a diabetic as a higher risk, and want to charge you more than the average price. In some cases they may even outright decline life insurance coverage on a person that suffers from diabetes.

Is it fair that diabetics get treated that way?

That’s a great question. If you ask the diabetic, most will say no, it’s not fair, they feel like the insurance companies are discriminating against you based on your health.

But lets remember that is what insurers do, they mitigate risk by being able to chose who they insure and who they deny.

In most cases, a diabetic can get a policy, especially if they are controlling their sugar levels well and there are no further complications from their diabetes.

The problem is when there is complications related to the diabetes. Things like kidney damage, eye or vision damage, heart problems, stroke etc. These cases are a bit more serious and it’s harder to get a good price for life insurance.

How can we help a diabetic get a good price on life insurance?

Having been a broker for over 26 years, I have learned all the ins and outs on life insurance for diabetics. I have found which insurance companies will give you a fair price, and which insurers will take advantage of the situation and charge you an arm and a leg for a policy.

In Canada, there are about 26 life insurance companies, and not all of them understand diabetes as well as they should. There are certainly some companies to avoid when applying for life insurance.

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At the same token there are some that are better in making positive decisions with diabetics, companies such as:

  • CPP (Canada Protection Plan)

Here you can buy up to 250k of life insurance as a diabetic without any medical exams. There are some questions you need to answer first, so it is important to speak to an experienced life isnurance broker like myself to see if this option is best for you or not.

  • Assumptions Mutual

Here you can buy up to 150k of life insurance as a diabetic and the same is true as with CPP – you need to answer some questions and again, we recommend you talk to us to determine which is best for your situation.

  • Industrial Alliance

They will allow you to buy up to 100k of life insurance as a diabetic, also have questions, and also you should consult with us

  • In some cases we actually do recommend to apply with a medical, depending on how well you control your diabetes, so a conversation is recommended here as well.

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Diabetes – A modern day epidemic

This here below is an article about Manulife and the kind of advice they give us agents on how to treat diabetics for life insurance underwriting…

When you hear the word epidemic, you probably think of something like the bird flu. But we’re
facing a different epidemic – diabetes. Here’s what you need to know.
Background
The World Health Organization (WHO) has predicted a 39% increase in the global incidence of diabetes,
according to a study published in the medical journal, The Lancetin March 2007. This study of Ontario’s
population between 1995 and 2005 indicates that the rate of diabetes has increased even beyond the WHO’s
prediction.
This means that as your clients age, they’re more likely to develop diabetes and more likely to live longer
with the disease. In addition, we are seeing more diabetes in young adults. The younger a person’s age when
diagnosed, the greater the chance of complications from the disease.

Diabetes facts

There are three types of diabetes:
• Juvenile or Type 1
• Adult Onset or Type 2
• Gestational diabetes.
Type 2 is the most prevalent. The Lancet study indicates that in 2005, 17.1%of Ontario’s population who were
age 50 or older had diabetes and the majority had Type 2. Over the 10 years of the study, the number of people
with diabetes increased by 113%, while the population increased by only 17%. The increase in diabetes is
attributed to the aging population and obesity.
Most diabetes-related deaths are due to cardiovascular complications, kidney failure and stroke. The
Government of Ontario has undertaken an education campaign to alert the public to these complications.
According to this campaign, four out of every five diabetics die from heart disease because of the effects of high
blood sugar on the heart and arteries.
The Ontario Ministry of Health predicts 300,000 Ontarians don’t even know they have diabetes

Some of these people will be diagnosed when they apply for insurance.
Underwriting the risk with a disease as prevalent as diabetes and with the rate of increase, you will likely encounter a diabetic client,
if you haven’t already.
For known diabetics, almost all applicants under age 65 will be rated – the minimum rating will be 150%. At
younger ages, ratings are higher.
Typically, the best offers are made to clients who are followed by their physicians at least once a year, test their
own blood sugars and are following their prescribed treatment.
You should expect a higher rating if your client is obese (having a Body Mass Index in excess of 30), has high
blood pressure, elevated cholesterol and any early signs of kidney or eye problems. If your client is over age 40
and has not had an EKG, your underwriter may order one.
In some cases, as noted above, the insurance exam and blood work will show abnormal results, indicating a
possibility of diabetes. In these situations, depending on the lab results, age and the client’s risk factors, the
minimum rating will be 200%.
Manulife automatically sends these findings to the physician named on the insurance application; if no physician
is named, the underwriter will contact you to have your client establish themselves with a physician so that we
can provide the results. It is very important for these clients to begin treatment as soon as possible to prevent
complications from the disease. After treatment has begun for at least one year, we can reconsider the case
with the goal of reducing the rating. It is unlikely that the case would be standard as diabetics have a higher rate
of mortality than the standard population.
The Decision
Manulife Financial was the first insurance company to insure diabetics in 1940. We continue to routinely insure
diabetics today. Ratings depend on the results of routine requirements and the information contained in the
Attending Physician’s Statement (APS).
To expedite the application process, tell us as much information as the client is aware of on the application or
cover letter and include the name and address of the physician so we can order the APS. If your client has
previously been declined or postponed, let us know and we’ll start with an APS only to determine if he or she is
now insurable.




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