Type 1 Diabetes Life Insurance

It's said that diabetics need to make 180+ additional decisions each day to manage their condition. Fortunately, deciding upon the right life insurance doesn’t need to contribute to this figure. By speaking to a Financial adviser, they can help take the decision-making pressure off by assisting with Type 1 Diabetes life insurance.

In this insight, we are going to cover how life insurance for diabetics can be arranged and how cover can work.

Key Takeaways

• It is possible to arrange life cover if you are diabetic and type 1. 
• To be eligible, you must be willing to submit your annual HbA1C results.
• Life insurance for diabetics is typically more expensive than for non diabetics, but your premiums can be reduced if you can maintain steady levels. Which is easier said than done.
• The best chance of arranging cover is to speak to a protection insurance adviser. They will have a panel of insurers. Some will provide cover where others won't. It could take a long time to find an insurer if you do not seek help and advice.

What is Diabetes?

Diabetes is a condition that occurs due to high levels of glucose (sugar) in the blood. It is estimated that there are over 4.8 million diabetics in the UK. There are two main types of the disease:

Type 1 Diabetes

Type 1 diabetes is an autoimmune disease where the body's own immune system attacks and destroys the cells that produce insulin. Insulin is a hormone produced by the body which regulates the amount of sugar in the blood. People with type 1 diabetes do not produce insulin and must take injections frequently to control their levels.  

Type 2 Diabetes

Type 2 diabetes is a condition that occurs when the body does not properly store and use glucose. This condition can make them insulin resistant or begin to produce an insufficient amount of insulin. Type 2 is normally treated by lifestyle changes, such as diet or exercise. Otherwise, insulin injections may be required. 

Both conditions can lead to further health issues, such as kidney disease, heart disease, and a weakened immune system.  

Type 1 Diabetes Life Insurance

Diabetes life insurance pays a lump sum upon death. Diabetes cover is specifically available for people with type 1 diabetes. The premiums are calculated by tracking glucose levels over a 3-month period.

You may require a life cover to leave money that can be used to help support your family, pay off any debts or clear your mortgage. 

Cover is included for diabetes-related deaths with a Diabetic insurance policy. 

How are type 1 diabetes life insurance premiums are calculated?

To insure yourself for life cover as a diabetic you would need to provide your glucose levels. This is known as your HbA1C reading. These figures are used to reduce your premiums, by up to 40%, providing your condition is improving and you are able to manage your glucose levels to a range set by your diabetes specialist. Other factors will also contribute to calculating the premium such as age, level of cover, and smoker status.

What is HbA1C?

HbA1C is a test to measure blood sugar levels in the body. It looks over the past 3 months as is expressed as a percentage. A non-diabetic would expect to have a level of 5.7% or less.

How do you supply your HbA1C for insurance purposes?

You will need to provide evidence of your HbA1C when being quoted for a diabetic life insurance policy. If you are unable to provide this, your quote will be based on an estimation. In some cases, you are able to proceed and your premiums can be adjusted once the evidence is submitted. 

To supply your HbA1C level you will need a blood test taken within 3 months of your application. You can request this with your GP. 

If you already have your results dated within 3 months, you do not need to re-test. 

You will need to provide your HbA1C levels annually to help reduce your premiums.

How does life insurance for type 1 diabetics differ?

Life insurance for diabetics is similar to standard life insurance policies, but there are some key differences to be aware of that can impact the price. 

• The cover provided within a Diabetes life insurance policy is only available to those with Diabetes. That means, if you needed a joint policy, you would only be able to insure if you are both diabetics. Instead of a joint policy, you would need to take out a second policy to cover the non-diabetic. 
• The amount of cover stays the same throughout the policy, but the premiums can change. The premiums are set to a maximum amount. After receiving your annual HbA1C results, your premium can be discounted. Sometimes, this is as much as 40% of your premium amount. The reductions are based on you managing your condition well and staying in an expected range of your HbA1C percentage. 
• The application process is specifically for people with diabetes. As a result, there are fewer questions and less medical evidence required.
• A diabetes life insurance policy is generally more expensive than standard life insurance. This is to compensate for the additional health risks that are associated with being diabetic.
• There can be additional support available, such as well-being support services to help you manage your levels.

How does applying for Diabetes Life Insurance work?

By speaking to your financial or insurance adviser you will be able to obtain more information about Diabetes life cover. If you proceed to apply, they will ask you questions about your lifestyle and finances to check the cover level you require. 

The Adviser will then send your application, including your HbA1C results, to the insurance underwriters. The underwriters may require that you go for a medical. However, this is not exclusive to being diabetic. Some providers may offer you a price level immediately. 

Once you have agreed on a premium to pay, your adviser will be able to put your cover in place and advise you of your start date and annual review dates. 

Is Life Insurance for diabetics expensive?

Diabetes life insurance is generally more expensive than a standard life insurance policy. However, it can be heavily discounted based on your HbA1C levels. Policies can start from as little as £10 per month, depending on the level of cover that is required. 

If your levels do increase you may lose your discount. This is reviewed annually. If you are able to bring these back in line, you should re-submit your results and a discount can be re-applied.

What's covered with type 1 diabetes Life Insurance?

As a diabetic, you are covered for a lump sum payout in the event of death. This includes death as a result of diabetic-related complications. If you were to choose a non-diabetic policy, you may be declined cover or any diabetic-related deaths may not be included.

Critical illness cover for type 1 diabetics

There are limited critical illness cover options available for diabetics. If you have an existing policy, the diagnosis of diabetes is not covered. However, you will be able to retain your policy if you insure yourself before diagnosis. 

Income Protection for type 1 diabetics

Diabetes income protection is difficult to obtain due to the stringent underwriting process. Income protection is currently unavailable to those with Type 1 Diabetes unless your diabetes is well-controlled and your Hba1c levels are consistently within acceptable limits.

A number of companies will consider Type 2 Diabetes income protection, however, this would be based on the same criteria as critical illness insurance.

We hope to see developments in the market in the future for insurers to start covering income protection for diabetics.

Arranging Type 1 Diabetes Life Insurance

Type 1 Diabetes life insurance is only available through independent insurance or financial advisers. It is a good idea to seek advice around protection insurance as this can help to make a consideration towards how much cover is required for you and your family in the event of death. 

If you're unsure where to start with seeking advice on life insurance for diabetics, you can complete the Sunny Fact Find for protection advice. The answers you provide help us to find the best-suited adviser for your needs. Your adviser contacts you for a no obligation conversation to discuss how they can help. You decide how to proceed.

source: Diabetes Org, Diabetes UK