Posted 3 Apr 2020

Does critical illness cover diabetes?

One of the very common questions that we get asked by people with diabetes, is ‘what about critical illness cover?’. It’s a very valuable policy that can provide cover if you get diagnosed with a serious medical condition.

Some people also want to know, if they get diagnosed with diabetes will it be covered? If you haven’t been diagnosed with diabetes and just want to know if the condition is covered then we’ll explain more in this article.

Let’s look at these questions and explain how this works…

Does critical illness cover diabetes?

You’ve not been diagnosed with diabetes and you want to know if a critical illness cover policy will payout. It’s a very common question because diabetes is one of the top pre-existing medical conditions in the UK currently, with approximately 4 million diabetics.

If you take out a new critical illness cover policy, then you’ll receive a payout if you get diagnosed with a condition defined on the list with your policy.

Some critical illness cover policies will provide cover for:

  • Type 1 diabetes (insulin-dependent diabetes mellitus)
  • Diabetes insipidus

These policies will often pay a percentage of the overall cover amount as they are not life-threatening and generally do not severely impact lifestyle.

You should always check your policy wording to make sure that your critical illness cover is right for you, or ask your adviser. It is quite rare that these conditions will be covered so you’ll need to choose your insurer carefully.

The other main question when it comes to critical illness cover and diabetes is…

Can I get critical illness cover with diabetes?

Generally, there are some critical illness cover options for people who have been diagnosed with diabetes. Here are some of the main things that we’ll consider when we talk about this type of cover:

  • What type of diabetes do you have? – generally, you can get critical illness cover if you are Type 2
  • Do you smoke? – smokers will find it more difficult to get a critical illness policy
  • Have you had any complications? – Retinopathy, neuropathy and nephropathy can also cause issues for getting this cover
  • What is your BMI (height and weight)? – if you are overweight, then you might also find it more difficult

Underwriting changes constantly for diabetes because of the number of people with this condition. So over time, we find that the terms will change so it’s always worth checking again every so often.

The facts about getting critical illness insurance with Diabetes

Critical illness cover is a fantastic way to protect yourself if you get diagnosed with a serious medical condition, these include things like:

  • Cancer
  • Heart attack
  • Stroke

Other conditions include:

  • Organ failures/transplants
  • Disability from an accident, illness, or injury
  • Major burns
  • Head trauma
  • Parkinson’s disease

You’ll get a tax-free lump sum if you get diagnosed with a serious illness that is covered under your policy. The cash can be used for treatment, alterations to your home, pay the mortgage or other debts, and support your family.

Several insurers are now offering Critical Illness Cover for people with type 2 diabetes. In the past, very few insurance companies offered this type of cover for people with diabetes, or it was just too expensive. Thankfully, this is changing, and if you have diabetes, taking out critical illness insurance could be an option.

Unfortunately, there still are no critical illness cover policies available for people with type 1 diabetes, however, this could change in the future. Watch this space…

What does Diabetes critical illness insurance cost?

Critical illness insurance for diabetes is certainly more affordable and reasonably priced now than it has ever been in the past. There are a number of reasons for this, including better mortality rates (as we are generally living healthier lives), greater competition, and cost-cutting measures in the insurance industry.

There have also been significant advances in the knowledge of diabetes, as well as developments in treatments. Overall, diabetes critical illness cover costs more than life insurance because you’re on average 6 times more likely to make a claim.

How does diabetes critical illness insurance work?

Critical illness insurance is generally available if your diabetes is well controlled, you’re a non-smoker, and you have no other underlying medical conditions or diabetes complications. Some policies will have exclusions such as cardiovascular conditions and anything relating to eyes, this can vary between insurers.

How much critical illness cover do I need with diabetes?

Critical illness cover is slightly different from life insurance because it is designed to provide a lump sum payment if you are diagnosed with a critical or serious illness. Most people relate this type of cover to Cancer, which is the biggest reason for the claim for critical illness cover.

Which insurance companies offer critical illness cover for people with diabetes?

It is also becoming more likely to be able to get critical illness cover for diabetes, as a growing number of insurance providers are offering a policy. If you’ve applied for critical illness cover or income protection with diabetes in the past, and your application was declined, then it will be worth contacting us to try again. Critical illness cover is an incredibly useful policy, especially for those with a pre-existing medical condition like diabetes.

Daniel Sharpe-Szunko
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