Diabetes Income Protection
iam insured specialises in helping people with pre-existing medical conditions such as Type 2 Diabetes to get insurance, including Diabetes income protection. Until recently it has not been possible to get cover for Type 2 Diabetes income protection, however we are extremely happy to tell you that there are now several options for this type of cover.
Who should take Diabetes income protection?
Income protection is designed to provide the policy holder with an income to help support themselves and their families if they are unable to work due to sickness, accident or injury. Diabetes income protection cover will pay you a tax free monthly income if you are unable to work for a period of time (usually 4 weeks to 2 years).
An income protection policy is especially useful for anyone who is either self-employed or who has minimal sickness pay provided by their employer. You should definitely consider this type of cover if you have a family or dependents to support who rely on you financially.
You can take out a Diabetes income protection policy to suit your circumstances and requirements which can include the following:
- Sum assured or cover amount: You can select your amount of cover to suit your needs which can include your monthly outgoings (e.g. Mortgage or rent, utilities, credit payments and cost of living).
- Most insurance companies will offer up to 60% of your gross monthly income and proof of income will be required at claim stage.
- Type of Diabetes income protection: There are 2 main types of cover which are short term which will pay out for a period of time (e.g. 1, 2, 3, 4 or 5 years) and long term cover which will pay out to the end of the policy term.
- Deferred periods: You can also select the deferred period which is basically the amount of time before your benefit will be paid (e.g. 1, 2, 3, 6, 9 or 12 months). The deferred period that you select is to either fit with the amount of sickness pay provided by your employer or for the amount of time that you will be able to survive if you were unable to work.
- A longer deferred periods for Diabetes income protection will reduce the premiums that you pay for cover.
- Term of cover: A Diabetes income protection policy will offer cover over a period or term of your choice in years which can be anything from 5 years up to retirement age (usually age 70). As with any other personal protection policy, premiums are lower for younger individuals due to the lower risks.
- Age rated premiums will generally provide the cheapest quotes however you should ensure that premiums are affordable throughout the term of cover.
- When were you diagnosed with Type 1 diabetes?
- Are you currently experiencing any complications due to your diagnosis?
- What are your Hba1c readings over the last 6 months?
- How well controlled is your Diabetes?
- How much medication (insulin) do you require to keep your Diabetes under control?
Your premiums for Type 1 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.)
How does Diabetes income protection work?
An application for any personal protection cover such as life insurance, critical illness cover or income protection where there are medical, occupational or sports related disclosures, will require additional underwriting. Until recently it was not possible to get an income protection policy if you had been diagnosed with Diabetes due to the perceived risks involved with this type of cover and Diabetes.
Thankfully there are now a handful of insurance providers who will offer Type 2 Diabetes income protection in some circumstances. Some of the restrictions that may apply to an application for Diabetes income protection include:
- Type of Diabetes: Only available for Type 2 Diabetes currently
- Control levels: Must be well controlled (not high Hba1c levels)
- Medical info: No Diabetes related complications (e.g. Neuropathy, Retinopathy or Nephropathy)
- Lifestyle: Only available to non-smokers generally
- BMI levels: Must be within standard BMI levels
- Treatment: No insulin or recent surgery/hospitalisation
You should be aware that your premiums for Diabetes income protection will also depend on your medical circumstances and your general health which will be assessed by underwriters from your medical records.
Exclusions for Diabetes income protection
Your application may also be accepted by your chosen insurance provider with exclusions which will be connected to your medical condition. An exclusion is where your application has been accepted by the insurer, however the underwriter has excluded certain related issues connected with your condition (can include: cardiovascular problems, eye problems and other related issues).
- You should always make sure that you check any offer of cover before you accept terms to ensure that they fit your requirements.
Premiums for Diabetes income protection
The premiums that you will pay for your cover will be based on a range of different factors which will include:
- Amount of cover (£’s)
- Age at application
- Smoker status
- Term of cover (years)
- Type of cover (short term / long term)
- Deferred period (months)
- Medical information / disclosures
- Lifestyle and health
Your premiums for Diabetes income protection will often increase slightly because of your medical circumstances and the level of increase will also depend on what your medical disclosures are. For more severe or for people whose Diabetes is not so well controlled, the level of increase will be higher than others who are well controlled.
Occupations for Diabetes 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.
Cover options for any income protection application will also be different depending on how dangerous your occupation which relates to your potential for occupational injuries or how easy it is for you not to be able to work due to injury. Treatment and medication for Diabetes has improved dramatically over the past several years which means that people who have been diagnosed with this condition are far more capable to work in higher risk or manual occupations.
Generally people who work in an office or in lower risk occupations (e.g. non-manual work) will pay less for Diabetes income protection and people in higher risk occupations will pay more for cover with restrictions.
iam insured Diabetes services:
Diabetes Life Insurance (Type 1 and Type 2)
Diabetes Travel Insurance (Type 1 and Type 2)
Diabetes Private Medical Insurance (Type 1 and Type 2)
NHS Choices (Diabetes)
For more information or for FREE advice to get the cheapest Diabetes income protection cover then you should contact one of our experts on 01244 732890 to protect your family with some of the UK’s top insurance companies today!
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