If you’re one of the over 3.7 million Canadians living with diabetes, you may be wondering if you can still qualify for life insurance in Canada and how the condition will impact your rates. The good news is that having diabetes doesn’t automatically disqualify you from obtaining coverage. Many insurers offer policies explicitly tailored for people with diabetes.

This following guide of BestInsuranceOnline will cover everything you need to know about life insurance for diabetics in Canada, including:

• Can people with diabetes get life insurance?
• Types of policies available
• How diabetes affects Underwriting and rates
• Tips for getting approved and saving on premiums
• What to do if you’re declined
• Answers to common questions

By the end, you’ll clearly understand your options and how to secure the best coverage for your needs and budget. Let’s dive in!

Can Diabetics Get Life Insurance in Canada?

Yes, Canadians with diabetes can obtain life insurance coverage, although the policy’s approval process and price will depend on several individual factors. Regardless of whether you have Type 1, Type 2, or gestational diabetes, many insurers are willing to offer policies to diabetic applicants, significantly if you can demonstrate that your condition is being well-managed.

Some key things to know upfront:

• Both term and permanent policies are available
• Many insurers specialize in high-risk coverage for diabetics
• You’ll likely need to complete a medical exam and health questionnaire
• Having well-controlled diabetes is crucial for approval and preferred rates
• Working with an experienced broker is highly recommended

So, while obtaining life insurance as a person with diabetes is very much possible, it’s essential to understand how your condition will be assessed and what you can do to get the best coverage for life insurance with pre-existing conditions.

What Types of Life Insurance Are Available for Diabetics?

Most life insurance policies are available to diabetics in some form, although specific coverage options and rates will depend on the severity and control of your condition. Generally speaking, the same kinds of policies offered to non-diabetics – including term, whole life, universal life, simplified issue, and guaranteed issue – are also accessible to those with diabetes, albeit often at a higher cost.

Term Life Insurance

Term life insurance provides affordable, temporary coverage for a specified period (usually 10, 20, or 30 years) and is often the most budget-friendly option for people with diabetes. While you will likely pay higher premiums than a non-diabetic, term policies still tend to be the least expensive option for getting a substantial death benefit to protect your loved ones.

• Protects a set term, typically 10, 20 or 30 years
• Premiums are based on your age, health, and level of risk
• Often requires a medical exam, but some no-exam options exist
• The most affordable option for diabetics on a budget
• Suitable for covering temporary needs like mortgages, family, etc.

Whole Life Insurance

Whole life insurance offers permanent coverage that lasts your entire lifetime and includes a cash value component. While premiums will be higher for people with diabetes than term insurance, having a policy that won’t expire can provide peace of mind. Some people with diabetes also appreciate the forced savings aspect of a life’s cash value.

• Permanent coverage that lasts your entire lifetime
• Higher premiums than term, but rates are locked in
• Builds tax-advantaged cash value over time
• Some policies offer accelerated death benefit riders
• Suitable for leaving an inheritance or final expenses

Universal Life Insurance

Universal life insurance is another type of permanent coverage that offers more flexibility than whole life. Premiums can be adjusted (within limits) to accommodate changing budgets, and the cash value component’s growth is tied to market performance. This type of policy may be suitable for people with diabetes who want lifetime coverage with premium and investment flexibility.

• Permanent coverage with an investment component
• Premiums can be adjusted within certain limits
• Cash value growth is tied to market performance
• More flexibility and control over the policy
• Suitable for estate planning needs

Simplified Issue Life Insurance

Simplified issue life insurance allows people with diabetes to obtain coverage without undergoing a medical exam. Instead, you complete a health questionnaire. Some people with diabetes may find qualifying for simplified issue policies easier. Still, coverage amounts will be limited (typically under $500,000), and premiums will be more expensive than fully underwritten policies.

• No medical exam required; only a health questionnaire
• Higher premiums than fully underwritten policies
• Coverage is typically limited to $500,000 or less
• Best for people with diabetes who want to skip the medical exam

Guaranteed Issue Life Insurance

Guaranteed-issue life insurance requires no medical exam or health questions—approval is guaranteed as long as premiums are paid. However, it comes at a steep cost and with a limited death benefit (often $25,000 or less). Guaranteed-issue life insurance should only be considered a last resort for people with diabetes who are unable to qualify for any other type of coverage.

• No medical exam or health questions asked
• Approval is guaranteed but has a graded death benefit
• The most expensive type of coverage with the lowest benefit amounts
• Used as a last resort if other options are not available

The right type of policy for you will depend on factors like age, health status, financial situation, and coverage needs. Speaking with an experienced advisor can help you compare options and make an informed decision.

How Does Diabetes Impact Life Insurance Underwriting and Rates?

Diabetes can significantly impact life insurance underwriting decisions and rates because it is considered a higher-risk medical condition that can lead to potential complications and shortened life expectancy. Insurers will assess each applicant’s overall diabetes risk by looking closely at the type and severity of the condition, age of diagnosis, how well it’s being managed, related health issues, and lifestyle factors.

Top 5 of the key factors underwriters will evaluate:

Type and Severity of Diabetes

• Type 2 diabetes is generally seen as lower risk than Type 1
• Gestational diabetes may not impact rates if resolved after pregnancy.
• Insulin-dependent diabetics often face the highest premiums.

Age of Diagnosis

• Being diagnosed at a younger age can lead to higher rates.
• Underwriters typically add 5-7 years to your age for risk assessment.

Control and Management

• A1C levels under 7% indicate reasonable control and can result in better rates
• Consistent blood sugar monitoring, medication adherence, and lifestyle management help demonstrate lower risk to insurers.
• Insurers will request medical records and tests to verify control.

Related Complications

• The presence of diabetes-related complications like neuropathy, retinopathy, cardiovascular disease, etc., will further increase premiums.
• The absence of complications can help you obtain more favourable rates.

Overall Health and Lifestyle

• Being overweight, smoking, or having other health conditions in addition to diabetes will lead to higher premiums.
• Maintaining a healthy weight, diet, and active lifestyle shows insurers you are serious about minimizing risk.

To give you a general idea, here are some sample monthly premium ranges for a 20-year term policy with $500,000 in coverage:

Age	Non-Diabetic	Type 2 – Well Controlled	Type 1 – Well Controlled	Type 2 – Poorly Controlled
30	$25	$55	$115	$160
40	$40	$95	$220	$305
50	$105	$285	$570	$885
60	$290	$885	$1625	$2285

*These are rough estimates for illustration purposes only. Your actual rates will depend on your unique circumstances.

As you can see, even well-controlled diabetics can expect to pay 2-4x more than a healthy person for the same coverage. However, working closely with your doctor and an experienced broker can help you get the most affordable rates possible.

9 Tips for Diabetics Applying for Life Insurance

As a person with diabetes applying for life insurance, there are several proactive steps you can take to improve your chances of getting approved at the best possible rates. While you may not have complete control over your diabetes diagnosis, you do influence how well you manage the condition and your overall health.

Here are 9 tips to help you navigate the application process successfully:

• Get your diabetes under control. Strive for A1C levels under 7%, consistently manage your blood sugar, and follow your treatment plan closely. Insurers will be looking for stability and control.

• Manage other risk factors. Losing weight, exercising regularly, lowering blood pressure and cholesterol, and quitting smoking can significantly improve your overall health and risk profile.

• Gather medical records. Be proactive in collecting as much documentation as possible about your diabetes diagnosis, treatment history, and current health status. The more information you can provide upfront, the better.

• Be transparent. On your application, fully disclose your condition and any other health issues. Omitting details will only hurt you or lead to a denied claim later. Honesty is key.

• Start early. Applying for life insurance as soon as possible after diagnosis or while you are younger and healthier can help lock in lower rates. Don’t wait until your health deteriorates.

• Shop around. Not all life insurance carriers view diabetes the same way. Some specialize in insuring higher-risk applicants. Enlist a broker who can help you compare offers from multiple providers.

• Consider a simplified issue. If you want to skip the medical exam or don’t have detailed records, simplified issue policies may be easier to qualify for, albeit at a higher cost.

• Ask about employer coverage. If your employer offers group life insurance, you may be able to get a certain amount of guaranteed coverage without individual underwriting. Use this to supplement a personal policy.

• Look into riders. Some policies offer diabetic care riders additional benefits like insulin, test strips, or other diabetes management expenses. These can add value to your coverage.

Finally, don’t get discouraged if you are initially denied coverage. You can always ask for reconsideration with additional documentation or reapply if your health improves. An advisor can also help guide you towards specialized or guaranteed issue products if needed as a last resort.

Is No Exam Life Insurance an Option for Diabetics?

No exam life insurance policies that don’t require a medical examination can be an option for some people with diabetes to obtain coverage. Still, they come with trade-offs compared to fully underwritten policies. Typically, with simplified issue or guaranteed issue policies, you will pay much higher premiums for lower coverage amounts than you would if you underwent traditional underwriting and were in relatively good health.

For simplified issue life insurance, you’ll still need to answer a health questionnaire about your diabetes diagnosis and management. Depending on the severity and control of your condition, you may or may not be approved.

Guaranteed-issue life insurance asks no medical questions at all, and approval is assured. However, the death benefit is often capped at $25,000-$50,000, premiums are very high, and a 2-3 year waiting period before full coverage kicks in.

So, while no exam policies can be an option if you cannot qualify for traditional coverage, they should generally be a last resort rather than a first choice for people with diabetes. It’s better to undergo full underwriting and prove your condition is well-controlled to obtain the best rates and coverage whenever possible.

What if I’m Declined for Life Insurance Because of Diabetes?

Being declined for traditional life insurance coverage due to diabetes can be disheartening, but it doesn’t mean you are out of options entirely. If your initial application is rejected, there are several paths you can take to try to secure some form of coverage or improve your chances of approval on a later attempt.

Here are 4 steps to consider:

Step1: Ask for reconsideration. If your health has improved or you can provide additional documentation showing your diabetes is well-managed, the insurer may be willing to take another look. A broker can help you make your case.

Step 2: Apply with another carrier. Just because one insurer declines you doesn’t mean all will. Different providers have different underwriting guidelines. Shopping around could help you find one more receptive to diabetic applicants.

Step 3: Look into guaranteed issue life insurance. If you’ve exhausted other options, guaranteed issue life insurance can provide at least some coverage, although at a much higher cost and with limited benefits. It’s better than nothing if you need it.

Step 4: Focus on improving health. Sometimes, the best thing to do is take some time to get your diabetes under tighter control and resolve any other health issues. Then, reapply to see if you can qualify for better rates.

The key is not to give up. An experienced advisor can help guide you through the process and find the best path forward for your situation.

Diabetes is just one of many health conditions that can impact life insurance eligibility and rates. Other common conditions include:

• Life insurance for cancer patients

Common Questions About Life Insurance for Diabetics

Key Takeaways

• Canadians with diabetes can still obtain life insurance, although they may face higher rates and a more intensive underwriting process.
• Insurers evaluate diabetic risk based on type, age of onset, control, complications, and overall health.
• Term, whole life, universal life, simplified issue, and guaranteed issue policies are all potential options.
• Working with a specialized broker, demonstrating reasonable control, addressing other health issues, and applying early can help secure the best rates.
• If declined initially, applicants can seek reconsideration, apply to other carriers, or use a guaranteed issue as a last resort.
• People with diabetes should never assume coverage is off the table without exploring their options.

Article Source

Life insurance for diabetics – aflac

Life insurance for people with diabetes: what it is – and how to get it – Sun Life