Diabetes Type 1 and Type 2 life insurance
The facts about getting life insurance with Type 1 and Type 2 Diabetes
For someone with a diagnosis of Type 1 or Type 2 Diabetes, getting life insurance can be a daunting task. However, arranging cover is usually fairly straight forward and some people are able to get life insurance without further medical underwriting. Rates offered by life insurance providers can differ dramatically based on your current health and past medical history. When making an application for Type 1 or Type 1 Diabetes life insurance, insurers will sometimes request a medical screening or report from your GP. This simply means that they want to cross reference what is on your medical records.
Why is iam|INSURED a Diabetes life insurance expert?
Over the past 20 years, our team of passionate experts has been dedicated solely to helping people with medical conditions to get life insurance. For diabetes, we’ve worked with some of the UK’s top diabetes experts as well as top life insurance providers to develop new products and ideas. We know diabetes life insurance better than anyone else on the market and we’re proud to say that we’ve helped more people to get cover than anyone else.
What does Type 1 and Type 2 Diabetes life insurance cost?
Rates for people with diabetes have reduced dramatically over the past 10-15 years thanks to things like better technology, more competition and improvements in mortality. There are more insurance companies offering life insurance for diabetics than ever before. This means that people with diabetes now have choice and can be confident that their getting treated more fairly.
Life insurance premiums for applicants with Type 1 and Type 2 Diabetes can be reflective of the added risk of developing other conditions such as heart disease, stroke and kidney disease. When applying for life insurance, Critical illness cover or income protection, underwriters will review your application based on things like:
- When were you diagnosed with type 1 or type 2 diabetes?
- Are you currently experiencing any complications due to your diabetes?
- What is your latest HbA1c (Mmol) reading?
- How well managed is your diabetes?
- Which medication (e.g. Insulin or Metformin) do you use to treat your diabetes?
Your premiums for Type 1 or Type 2 Diabetes life insurance will also depend on:
- Sum assured (£’s)
- Term of cover (years)
- Type of policy (e.g. Family, Mortgage, Whole of Life etc.)
Type 1 Diabetes life insurance rates
As a person with this condition you are, it is possible that you will be offered Type 1 Diabetes life insurance at a slightly higher premium if your condition is moderate to severe. The increase in your premium will depend upon your Hba1c, current health and length of diagnosis. Other factors like high blood pressure/cholesterol and whether you smoke could also affect your policy. Applicants for Type 1 Diabetes life insurance, critical illness cover and income protection will often be considered for non-standard cover. Non-standard cover means that underwriters have identified additional risks and standard life insurance terms may not be appropriate. Rates for non-standard Type 1 Diabetes life insurance will vary between providers and underwriters who will use a risk-based approach to apply a ‘percentage loading’ or ‘£’s per mille loading’ to your premium.
Type 2 Diabetes life insurance rates
Life insurance rates for people with type 2 diabetes have been dropping gradually but consistently for many years. The main reasons are that we know more about this condition and the simple fact that there are some many people that now have type 2 diabetes. Current figures suggest that there are nearly 4 million people in the UK with type 2 diabetes which is a significant proportion of the overall population.
Life insurance rates for people with type 2 diabetes can vary from one insurance provider to another so it’s important to get the right rates. You should provide as much information as possible to get a rate which is fair and reflects your current status. Premiums will be based on your circumstances at the time of your application so also well worth checking again in future if your control, readings and health improves.
Percentage (%) loading for Type 1 Diabetes life insurance
When applying for any non-standard cover such as Type 1 Diabetes life insurance, it is important you know insurers may apply ‘percentage loading’ to your premium. A premium with ‘percentage loading’, will raise your monthly premium by a set percentage for the term of your cover. This is added when underwriters identify additional risks of claim. Every insurance provider has a different maximum level, so if you are declined it is worth searching for a provider who can accommodate higher risk Type 1 Diabetes life insurance clients (e.g. 300% or 400%).
Per mille loadings for Type 1 Diabetes life insurance
‘Per mille loading’ will add a set amount to your premium for every thousand £’s of cover applied for, such as £1 or £2. This type of loading is rarely applied to Type 1 Diabetes life insurance and often only used for more severe conditions such as Cancer. ‘Per mille loading’ can be added to a policy for its whole term or for a specific period of time (e.g. 2, 3, 4 or 5 years).
Exclusions for Type 1 Diabetes life insurance, critical illness cover or income protection
Another thing to consider before applying for Type 1 Diabetes life insurance, critical illness cover or income protection are ‘exclusions’ that may be applied to your policy. If your policy contains an exclusion this means you may not be able to claim for any conditions linked to your Type 1 Diabetes diagnosis (e.g. Heart disease, neuropathy etc.). You should also be aware that you may be ineligible to receive additional Type 1 Diabetes life insurance benefits such as Total and Permanent Disability, Guaranteed Insurability or Waiver of Premium.
How much Type 1 Diabetes life insurance do I need?
Without knowing your personal circumstances, we are unable to tell you how much Type 1 Diabetes life insurance you may require. We can, however, provide you with a few simple rules to follow that will help you to make an informed decision.
As a person Type 1 Diabetes, it is important you aware that your policy could increase after underwriting. This reflects any additional risk of claim and could make your Type 1 Diabetes life insurance policy less affordable than you initially thought.
Type 1 Diabetes life insurance amounts of cover
- The amount left to pay on your mortgage.
- Any outstanding debt (e.g. Loans, second charge, credit cards and other)
- Spouse or Partner
- Annual Income (after Tax)
- Any financial assets (e.g. car, house, business etc.)
If you feel unsure or require information to decide how much cover you may need to secure your family and home, see our Iam insured life insurance calculator.
Type 1 Diabetes critical illness cover amounts
Unlike Type 1 Diabetes life insurance, a critical illness policy will provide a tax-free lump sum should you be diagnosed with a serious or critical illness. Many people choose to apply for Type 1 Diabetes critical illness cover on top of an existing life insurance policy. This provides policy holders with peace of mind should they become unfit for work. Some things to consider when applying when applying for critical illness cover are:
- Your annual Income (after Tax)
- Mortgage/rental payments (annual)
- Cost of living (annual)
- Any other potential costs (e.g. medical treatment or adaptations)
Unfortunately, applicants with a diagnosis of Type 1 Diabetes are unlikely to be approved for critical illness cover. Critical Illness cover could be obtained through a specialist insurer but will likely contain exclusions. However, as Insurance providers have recently begun considering Type 2 Diabetics for critical illness cover we are hopeful this will change in the near the future. For more information regarding Type 1 Diabetes critical illness cover eligibility it is absolutely worth contacting a specialist. If you would like to speak with one of our many Type 1 Diabetes life insurance expert advisors, feel free to contact us through our enquiry form or by calling us on 0800 009 6559.
Type 1 Diabetes income protection amounts of cover
Type 1 Diabetes Income protection, like critical illness cover, provides additional protection should you diagnosed with serious illness. Rather than providing a lump sum, a Type 1 Diabetes income protection policy will provide monthly payments which can be used by policy holders to pay for monthly expenses and maintain their standard of living. Policy holders can make multiple claims against a Type 1 Diabetes income protection policy during its term making it a very valuable form of cover (Especially for applicants who are self-employed). When discussing the amount of income protection you may require you should look closely at:
- Your monthly income (after tax)
- Any mortgage/rent payments
- Any other debts
- Your cost of living
Insurers often use the same acceptance criteria as critical illness cover making Type 1 Diabetes income protection unlikely to be accepted. Applicants with no complications and who have their condition well controlled may be considered for Type 1 Diabetes income protection at a higher rate or with exclusions to their policy so it is well worth applying.
Which insurance companies offer Type 1 Diabetes life insurance?
For many people with Type 1 Diabetes, it is possible to obtain a Diabetes life insurance at varying rates. The cost of your premium will depend upon your personal circumstances and your providers ability to underwrite you, so it is best to compare quotes before making any decisions. Options available for Type 1 Diabetes life insurance are steadily increasing and as more people are diagnosed meaning that rates offered by providers are becoming much more competitive.
Iam Insured are a Type 1 Diabetes life insurance specialist with more than 20 years of experience helping people like you find cover at an affordable price to protect your family or home. Our specialist advisors will take every detail into account whilst assessing your application for Type 1 Diabetes life insurance and will help provide cover that works for you and your family.
Type 1 and Type 2 Diabetes critical illness cover and income protection providers
Although, it is often far more difficult to obtain Type 1 Diabetes critical illness or income protection policy, this is quickly beginning to change. Many insurers are now offering this type of cover for Type 2 Diabetes and options available to Type 1 Diabetes are continuing to grow. In the past, obtaining critical illness cover or an income protection policy as a person with Type 1 Diabetes has been incredibly difficult or near impossible but as attitudes change so does your eligibility for cover.
These policies can provide excellent financial protection for those with pre-existing conditions such as Type 1 Diabetes life insurance. If your application for Type 1 Diabetes critical illness cover or income protection has been declined previously, we urge you to consider contacting a specialist provider like Iam Insured.