Life insurance for diabetics

What’s life insurance? 

Life insurance, also known as death cover, is a type of insurance product that pays a lump sum amount if you pass away or are diagnosed with a terminal illness. The money paid from your life insurance goes to the beneficiaries nominated in your policy.  

In addition to life insurance, it could also be worth considering total and permanent disability (TPD) insurance, income protection insurance or trauma insurance, depending on your circumstances.  

What’s diabetes? 

Coming to terms with a recent diabetes diagnosis can be challenging. If you or someone you love has been diagnosed with diabetes, it can often help to take time to learn more about the condition.  

Diabetes is a serious condition that impacts a person’s ability to maintain healthy blood glucose levels. It can affect the entire body and requires daily self-care. While diabetes can be managed through treatment and care, high levels of glucose can lead to health complications, both in the short and long term. 

There are three main types of diabetes: 

• type 1 diabetes: An auto-immune disease that attacks the pancreas’s ability to produce insulin
• type 2 diabetes: A progressive condition that causes the body to become immune to the normal effects of insulin
• gestational diabetes: A condition that occurs during pregnancy and often disappears once the baby is born 

Can I get life insurance if I’m diabetic? 

It really depends on your situation. Typically, life insurance cover for diabetics is at the discretion of the individual insurer.  

Many insurers are open to providing cover if you’ve managed your condition well for at least six to 12 months, regardless of whether you have type 1 or type 2 diabetes.  

But if you’re dealing with additional health conditions, like coronary heart disease, stroke, obesity or high blood pressure, you could find it more challenging to get approved for a life insurance policy.  

We understand that finding insurance cover can be a difficult process, but there are numerous policies available, and we’re here to help you compare your life insurance options. 

How diabetes impacts life insurance 

Unfortunately, statistically speaking, people with a pre-existing diagnosis of diabetes are more likely to make a life insurance claim. With this in mind, your insurer could offer you revised terms that reflect your unique situation. You might also find that your premium is higher to account for the added risk for the insurer. 

Importance of understanding your insurance cover 

If you have a medical condition like diabetes, taking out an insurance policy can work a bit differently. It helps to have a thorough understanding of your insurance cover. Some insurance providers might offer you revised terms based on your condition, which is common practice. This can include an exclusion, a loading onto the policy, or a deferral.  

While it might be tempting to just opt for the cheapest premium, it’s worth taking the time to read the policy and the specific terms you’ve been offered. By law, an insurer must provide you with a product disclosure statement (PDS) before you buy life insurance. Check the PDS for key details, including: 

• inclusions and exclusions
• the information you’ll need to provide your insurer
• information about premiums and how they could change over time
• waiting periods before you can claim
• the claims process
• how to lodge a complaint about the decision or claims process 

What do life insurance providers consider when assessing people with diabetes? 

As is the case with any insurance policy, life insurance premiums are calculated based on the level of risk your insurer is taking on. Many life insurance policies are medically underwritten, meaning the insurer will ask you a series of medical questions that they’ll base their assessment on.  

As a diabetic, it’s common to be asked a range of medical questions that relate to your condition and management plan, including: 

• your current age
• the age you were diagnosed
• you and your family’s medical history
• whether you have type 1 or type 2 diabetes
• your current weight and height
• your current medications, including dosage
• your most recent (glycosylated haemoglobin) result
• recent blood pressure, blood glucose, and ECG readings
• your diabetes management plan 

Insurance underwriters ask these questions to determine whether (according to their own measures) you have ‘good’ or ‘excellent’ control of your diabetes. This isn’t a reflection on your character! It’s just how they manage their own risk. 

How do I find a life insurance policy if I have diabetes? 

Well, you’ve already made a good start by visiting iSelect’s website. From here, you can compare life insurance from leading insurers in Australia via our partner, Lifebroker. You’re probably already managing more than most people keeping your diabetes in check – let us help with the insurance part.