- Life Insurance and Diabetes: Introduction
- Can You Get Life Insurance with Diabetes?
- Different Types of Life Insurance Explained
- Standard Life Insurance and Diabetes: When to Choose it
- No Medical Life Insurance and Diabetes: When to Choose it
- No Medical Life Insurance and Diabetes: Rates
- Life Insurance with Diabetes Type 1
- Life Insurance with Diabetes Type 2
- Life Insurance for Seniors with Diabetes
- Getting Life Insurance with Diabetes
Life Insurance and Diabetes: Introduction
The rise of diabetes in Canada is a concerning trend. According to 2019 data from the Diabetes Canada Cost Model, one in three Canadians have diabetes or are prediabetic – with the vast majority being type 2. This form of diabetes occurs when the body doesn’t respond properly to insulin that it produces, as opposed to type 1 diabetes, where the body doesn’t produce any insulin.
Given this prevalence rate, one might wonder if it’s possible to get life insurance with diabetes. The answer is yes and there are several options available. Traditional life insurance involves going through a full underwriting process, which usually includes a medical exam. No medical life insurance involves either a short questionnaire (called simplified issue) or no questionnaire at all (called guaranteed life insurance).
So, what factors determine whether someone with diabetes can qualify for life insurance coverage and what type best suits their situation? Let’s take a look.
Can You Get Life Insurance with Diabetes?
Yes! Life insurance with diabetes is possible. The type of policy you can qualify for depends on the state of your condition. The following factors are assessed:
- Insulin dependence
- History of diabetes (how long you have had it, does it run in your family)
- Blood sugar management
- Age, weight and height
- Smoker or non-smoker
- Renal failure
- Other pre-conditions such as obesity
Those with more health conditions have a reduced chance of obtaining traditional life insurance but will still qualify for no-medical life insurance.
Different Types of Life Insurance Explained
There are three main types of life insurance:
- Standard life insurance involves a detailed application form and questionnaire, along with medical evidence of insurability.
- Simplified issue life insurance involves a faster and easier application process and a short questionnaire with some health-related questions. A medical exam is not required.
- Guaranteed issue life insurance involves a fast application. No medical evidence of insurability is needed. No medical is required and no health questions are asked.
Standard Life Insurance and Diabetes: When to Choose it
Apply for standard life insurance if you are in the pre-diabetes or early diabetes stage with a firm plan to manage the condition and an excellent medical prognosis. This is also an option for those without additional health conditions, whose diabetes is stable and managed through insulin and good lifestyle habits.
| Insurance Type | Typical scenario | Coverage Limits | Costs |
| Traditional life insurance WITH medical exam | Pre-diabetes or initial stage of diabetes, w/o other health conditions, stable insulin levels | Up to several million | Very low |
| Traditional life insurance WITHOUT medical exam | Pre-diabetes or initial stage of diabetes, w/o other health conditions, stable insulin levels | Typically, up to $1,000,000 for select customer groups | Very low |
No Medical Life Insurance and Diabetes: When to Choose it
Choose no medical life insurance if your diabetes is not stable and/or you have additional health compilations. Simplified issue is suggested for those that have a measure of control over the condition even though they have additional pre-conditions. Guaranteed issue is suggested for those with aggressive cases of diabetes and additional health pre-conditions such as obesity, renal failure, cancer or heart disease.
| Insurance Type | Typical scenario | Coverage Limits | Costs |
| No medical life insurance, simplified issue | More complicated diabetes cases, long history of diabetes, inability to control insulin levels, combination of a few pre-conditions | Typically, up to $250,000 – $350,000 | Medium |
| No medical life insurance, guaranteed issue | Very heavy condition, uncontrollable insulin levels, extensive renal damages or failure, combination with multiple other pre-conditions (e.g. overweight, history of heart attack, cancer etc.) | Typically, up to $25,000 – $30,000 | High |
No Medical Life Insurance and Diabetes: Rates
Rates for no medical life insurance vary by age, policy type and health condition. Two guiding factors are: simplified issue has coverage up to around $350,000 and is typically in the middle cost range between traditional and guaranteed for premiums. Guaranteed issue has a coverage up to around $30,000-$40,000 and is the most expensive type of policy. It also does not pay out during the first two policy years for any reason other than an accident (not for death related to illness). If the life insured passes away from illness during the first to years, the premiums are returned to the beneficiary.
The following quote is for a 35-year-old female, non-smoker and in reasonably good health. The coverage is for a 20-year term.
- Sample cost of simplified issue insurance: Coverage of $350,000. Premiums range from $20/month to $66/month.
As you can see, the range in premiums is substantial among insurance agencies. Work with a broker that can connect you with the best application for your needs, and for your budget.
The next quote is for a female, non-smoker, serious health conditions, aged 40 who requires $40,000 (the max allowable with RBC guaranteed issue) in coverage. She would pay $63.43 monthly with RBC.
Life Insurance with Diabetes Type 1
Type 1 diabetes is considered more severe than type 2, often beginning in childhood and is usually caused by genetics or issues with the pancreas. Treatment for type 1 usually includes ongoing insulin injections.
No medical simplified issue is often recommended for those with type 1 diabetes as it provides coverage of $250,000-350,000 and lower costs than guaranteed issue insurance.
If blood sugar levels can be controlled through diet and exercise alone, a traditional life insurance policy may be an option, though rates may be higher (75%-150%) compared to those without diabetes.
Life Insurance with Diabetes Type 2
Type 2 diabetes is the most prevalent in Canada and affects people of all ages, often due to lifestyle factors. In many cases, diet and exercise can regulate blood sugar levels making traditional life insurance policies a good fit for those who are non-insulin-dependent, have no long diabetes history and whose blood sugar is under control. These policies offer higher coverage limits and lower costs than other options that may be available.
Rated life insurance policies can also be considered; though rates may be higher (up to twice as much) for individuals with type 2 diabetes who have other health pre-conditions such as being overweight.
Lastly, those who struggle to maintain proper blood sugar levels or have a history of renal damage or renal failure may find no medical life insurance more suitable as it still provides coverage even with serious health conditions.
Life Insurance for Seniors with Diabetes
Diabetes is more common among seniors than those who are 35, so a 60-year-old with diabetes may qualify for standard rates on a traditional plan, whereas a 35-year-old is likely to be denied. Working with an experienced life insurance broker can provide access to a wide array of policies and companies suitable for the individual’s circumstances.
Getting Life Insurance with Diabetes
Brokers are a great option when searching for life insurance with diabetes, as they can offer access to policies from a variety of companies and look for policies that best suit the individual’s situation. Brokers are knowledgeable about the different types of life insurance available, allowing them to explain options and provide advice that can assist in finding the best policy for diabetes coverage. Ultimately, using a broker is a smarter way to find a life insurance policy than using an agent alone.
Our brokers have access to more than 25+ agencies and policies, ensuring that we can find you the best coverage at the best rate no matter your health condition. Thanks to No Medical Life Insurance, you can get life insurance with diabetes. Contact us today to learn more.
