Affordable Life Insurance Rates with Type 1 Diabetes Guide

Life Insurance With Type 1 Diabetes 


Impact on  Underwriting Class:

Significant 

Standard Rates Not Available

Term Life Ins. Declines Common 

Table Rating severity & rate based 

on current age, HbA1c readings, 

insulin level required, medications  

and any history of complications

Can I be approved for life insurance with Type 1 Diabetes?

What information will  life insurance companies want to know?

Will I need to take an exam for type 1 diabetes life insurance?

How much will my life insurance cost and how exactly are my rates affected by my type 1  diabetes?

How accurate are the quotes I get from your quote tool? 

How can i improve my underwriting rating and lower my life insurance cost?

What are the best life insurance companies for high cholesterol?

What is the application process for life insurance with high cholesterol?

​​​Traditional Term Life Insurance with Type 1 Diabetes

While standard rates are not possible with type 1 diabetes, the severity of the health rating, and corresponding price, can vary significantly. 

Therefore, it's important that you use an agent that is experienced with diabetes cases, and has access to the carriers most likely to be receptive.

The process of obtaining a term life insurance offer with type 1 diabetes is similar to seeking  life insurance after a heart attack,  Sleep Apnea or AFib and many other specific conditions.

Terms Lengths

Primarily, term life insurance is available for lengths ranging from 5 years to 30 years with 20-year terms being the most popular. Term policies usually have a minimum face amount of $50000, and the policies terminate at the end of the term period or can be renewed annually at a vastly increased rate.

Likely Underwriting Classification with Type 1 Diabetes

Applications for life insurance with type 1 diabetes are evaluated on a case by case basis. As such, your story matters. That is to say two people with the same age and underlying condition may get  different offers from the same carrier based on the time elapsed since the event and patient compliance.

Because each case is different, the following pricing scenarios are the best estimates based on experience. Note that the standard and higher categories are not available with type 1 diabetes.

Best Case – If over age 35 and type 1 is  diagnosed after age 5, with Hba1c readings below 7, and a maximum daily use of 25 ml of insulin, applicants with symptoms are under excellent control with no hospitalizations, have a possibility for a table 3-5 rating. 

Mid Case –If your type 1 diabetes is more challenging despite good compliance or cases where the applicant is under 35  a heavier substandard rate will apply. Table 6/F -8/H is likely.*

To learn about how table ratings work click here.

Severe Case – If your Type 1 diabetes issues are severe and you, have been hospitalized, require >50 ml of insulin  and/or you have additional medical conditions, you will not be eligible for traditional term insurance. Skip to Simplified life insurance options.

while expensive this may still be a very good outcome for your circumstances

Decline– Type 2 diabetes is commonly declined for traditional coverage  If this is the case you may be eligible for a smaller face amount policy. These policies are referred to as Guaranteed issue or simplified issue. If you have been declined please contact us.

Key Takeaways

  • Because two people with the came condition can get different ratings from the same carrier- Details Matter!
  • Standard Rates are not  possible with type 1 diabetes.
  • Graded cases may still be a "good deal" depending on your circumstance.
  • #indy​​​Pricing For Term Life Insurance

    confused

    The difficult part of term life insurance with type 1 diabetes is finding the best deal. This is because different carriers have differing appetites for certain kinds of risks. As a result navigating this process

    is not as easy as using a quote tool or the sample rates below.  This is discussed in greater detail in the case study.

    Male Monthly Rates          $500000 20 Year Term

    Age

    TableD

    Table  F

    Table H

    25

    $56.57

    $69.553

    $82.09

    30

    $60.90

    $74.74

    $88.589

    35

    $66.09

    $81.22

    $96.36

    40

    $97.42

    $120.49

    $144.37

    45

    $157.85

    $196.02

    $234.19

    $100000 20 Year Term

    Age

    Table D

    Table F

    Table H

    50

    $63.35

    $77.66

    $91.96

    55

    96.48

    $119.31

    $142.14

    60

    $158.36

    $196.66

    $234.96

    65

    $284.16

    $353.91

    $423.66

    70

    $501.01

    $624.705

    $748.31

    Female Monthly Rates              $250000 10 Year Term

    Age

    Table D

    Table  F

    TablehD

    25

    $21.00

    $24.96

    $28.91

    30

    $21.00

    $24.96

    $28.92

    35

    $23.55

    $28.15

    $32.74

    40

    $28.81

    $34.720

    $40.63

    45

    $42.67

    $52.05

    $61.43

    $200000 20 Year Term

    Age

    Table D

    Table F

    Table H

    50

    $91.19

    $112.35

    $136.329

    55

    $132.38

    $164.18

    $195.99

    60

    $215.68

    $268.31

    $320.94

    65

    $386.70

    $482.08

    $577.47

    70

    $719.51

    $897.879

    $1076.06

    Do you "fit" into the usual risk factors for the Condition

    Because Type 1 diabetes is connected  with a multitude of potential complications,  underwriters will scrutinize symptoms more closely than most files.

    Unlike most health conditions, where underwriters tend to be more comfortable with making offers when the applicant's condition fits into a common risk factor pattern, type 1 diabetes does not follow risk patterns other than heredity.

    What are/were your symptoms

    When underwriting applications for life insurance with type 1 diabetes, carriers will want to know about any symptoms and/or complications.

    Your Diagnosis and Treatments

    Life insurance underwriters will want to know the age of diagnosis and of any subsequent complications, including any hospitalizations. Underwriting will also want to know about insulin intake and any medications you have been prescribed for your type 1 diabetes.

    While information that is "foggy" will be taken from your medical records, knowing the dates of diagnosis and treatments is necessary to get an accurate quote.

    Your Follow Up Care

    When evaluating life insurance with type 1 diabetes applications, underwriting will want to see compliance with your insulin regimen, any prescription medication, and regular follow up  doctors appointments.

    Your Over all Health (and related conditions)

    While any application for life insurance will take into consideration your overall health including conditions like high cholesterol and gout,underwriters in type 1 diabetes cases will specifically look for certain related conditions. Of major concern are the following:

    • Kidney disease (nephropathy)
    • Heart disease
    • Stroke
    • High blood pressure
    • Nerve disease (neuropathy)
    • Foot problems, including ulcers
    • Eye disease (retinopathy)
    • Skin infections
    • Gum disease

    Obtaining Term Life Insurance With Type 1 Diabetes


    With a couple of caveats, obtaining offers for term life insurance with type 1 diabetes is the same as with any other health condition.

    The primary caveats for life insurance with type 1 diabetes are that no exam or so called “non-med” policies will not be available for traditional term insurance and an attending physician's statement (APS) will  surely be requested.

    The APS will likely slow the process as doctors are in no hurry to respond to requests from life insurance companies.

    Much the same as the information that underwriting will require, the information that you will need to provide to an agent  in order to get the most accurate quote is as follows:

    • Date of Diagnosis (your corresponding age)
    • Treatments Undergone (ie. insulin required)
    • Dates of Treatments      (A1C and insulin history)
    • Severity & Frequency of Symptoms (hospitalizations and prolonged work absences)
    • Any Other Health Issues

    No Medical Exam Term life Insurance With Type 1 diabetes?

    The term life insurance market is quickly adopting accelerated underwriting programs that do not require a medical exam as part of the application process. However, these no exam or non-med policies   will not be available if you have type 1 diabetes. Note that the simplified issue policies discussed later in this article do not require an exam.

    Without the no exam option, you will be required to take a para-medical exam. The exam is usually a 15-20 minute meeting with a  nurse. Your exam will consist of a blood draw, a urine sample, and height and weight recorded.

    The medical exam is discussed in detail here. 

    Some Term Life Basics:

    Phone Interview

    Most term carriers will have the underwriting department do a telephone interview with you. The In the case of previous stroke the conversation will be wide-ranging, and last about 20 minutes.

    The purpose of the interview will be to flesh out the information that it has from your exam, medical information, and driving history. Questions will often revolve around diet and lifestyle. Answer as honestly as possible, but never "offer" unrequested information.

    Riders

    In addition to the period of insurance, it is essential to understand the available policy riders. Riders are additional benefits that, often for an additional cost, are included in your policy.

    The five most prominent riders are listed below with links to in-depth descriptions.

    • Waiver of Premium          
    • Living Benefits      
    • Conversion Privilege    
    • Child Rider  
    • Additional Purchase Option

    Contestability

    While there is no waiting period for the insurance to go into effect, the insurance company has a two-year window from the policy start in which they can contest a benefit for material misrepresentation on the initial application. So, honesty is the best policy.

    You can dive deep into the ins and outs of term life insurance, learning about available term lengths, riders, financial ratings, and rates. The Life Insurance Help Desk works with  the top term life insurance carriers.

    Case Study: Pricing term Life Insurance With Type 1 Diabetes

    Please see the case study below . it will show why it is in your interest to have as many options as possible available when shopping for life insurance with type 1 diabetes or any other impairment.

    Gender: Male Age: 46

    $250000 20 Year Term

    Tobacco: No

    Well controlled type 1 diabetes, diagnosed age 11

    Hba1c <7, 25 ml insulin daily 

    This looks like a best case scenario would be table 4 depending on the insurers appetite for a type 1  risk. Let’s take a look at the rates.

    Table 4/D Rates - Table 6/F Rates - Table 8/H Rates

    • Table 4 rates
    • Table 6/F Rates
    • Table 8/H Rates

    Life Insurance Company

    Monthly Payment

    $ 83.82

    $ 92.60

    $ 102.38

    $ 102.77

      186.78

    This table which shows only a few of the major life insurance companies available, illustrates the difference in rates. For standard rates Principle is more than 10% more expensive than Banner.

    On it’s face this seems like a pretty straight forward choice and if underwriting grades between carriers is the same, it really can be that simple.

    This type of easy price comparison is particularly helpful  for younger people in good health and shows why you want to use an independent Agent.

    For people who suffer from type 1 diabetes or any other serious diagnosis, it gets much more complicated.

    Because life insurers manage their appetite for specific risks by being more lenient or more stringent with underwriting grades, you need to know which company will grade you a table 4 risk and which ones will grade you as table 6-8.

    In the case above Banner is best in either case. But, if your Agent can’t use Banner, Principal is likely to be the best deal because the more competitively priced carriers will likely rate the risk table 6-8 while Principal might well go table4.

    This is something you can’t know by simply looking at the lowest price. In this case using an independent agent could save you both time and money. Remember saving 30 a month on a 20 year policy is $7200 over the life of the contract.

    That’s  $7200 that would be better left in your wallet!

    Process for Term Life Application With Type 1 Diabetes

    Now that you know the information you will need to receive the most accurate post stroke term life insurance quote possible, it's time to begin the application process. The term process is outlined  "step by step for you in the Life Insurance Buying Guide.

    The Help Desk is committed to transparent pricing (we'll even share our computer screen with you if you'd like) and making the application process as painless as possible.

    ​​​Burial Insurance with Type 1 Diabetes

    Approved!That was Easy.

    All final expense or "burial insurance" carriers are  concerned with type 1 diabetes. In fact, most will decline coverage if you were diagnosed before a certain age. However, if you can get approved, these "no-exam needed" burial policies are the next best choice for anyone who will not get through traditional underwriting.

    The "final expense" market serves differing consumer needs. There is the need that is made obvious by the name "final expense". This term refers to a funeral, burial and miscellaneous cost tied to the rituals surrounding life's end.

    Many of the buyers of these end of life policies simply want to remove any financial burden their funeral and burial would cause to their loved ones, while others want to leave a legacy.

    Alternatively, the simplified issue marketplace serves as a safe harbor for people who need some life insurance, but cannot qualify for traditional term underwriting. The lenient underwriting standards of this market allow for many people with type 1 diabetes to get coverage.

    How the policy works will be dictated by the type of final expense or burial policy it is:

    • First-day Coverage  
    • Graded Coverage

    How Final Expense Life Insurance Works with Type 1 Diabetes

    With death benefit face amounts that range from $5000-$100000, the simplified issue or "final expense " life insurance market is mostly made up of whole life insurance products. However, there several policies that have components of term policies starting to emerge. Make sure you know what you are buying!

    Whether term or whole life, the calculation of the death benefit depends on if the policy is first-day coverage or graded

    First day policies are straightforward, and provide a full death benefit from day 1 of the policy.

    Graded policies use a two or three year period in which the benefit increases to the face amount over the contractual time period.

    These policies commonly pay premiums plus interest if you die in the first year of the policy; 50% if you die after one year but before two; and full face amount after two years.

    The carriers offer graded policies based on the applicant's health. These provisions are a way for the carriers to provide coverage while limiting their risk.

    Graded or not, a whole life policy has a fixed premium that cannot increase and the policy stays in force until the premiums stop being paid or the insured dies.

    Pricing for Burial Insurance with Type 1 Diabetes

    In addition to different underwriting standards, final expense pricing is complicated by the fact that  a lot of providers only operate in certain states. 

    As a result the samples below are of limited value. You should use the final expense quote tool found here.

    Male      

    $25000  "Final Expense" Whole Life   1st Day Coverage 

    Age

    $ Mo.

    Age

    $ Mo.

    40

    $40.89

    65

    $ 115.18

    45

    $ 50.87

    70

    $ 149.13

    50

    $ 56.25

    75

    $ 204.66

    55

    $ 65.56

    80

    $ 297.86

    60

    $ 85.66

    85

    $414.57

    $15000 Final Expense" Whole Life Graded Coverage

    Age

    $ Mo.

    Age

    $ Mo.

    40

    $40.89

    65

    $ 115.18

    45

    $ 50.87

    70

    $ 149.13

    50

    $ 56.25

    75

    $ 204.66

    55

    $ 65.56

    80

    $ 297.86

    60

    $ 85.66

    85

    $414.57

    Female    

    $15000  "Final Expense" Whole Life  1st Day Coverage 

    Age

    $ Mo.

    Age

    $ Mo.

    40

    $ 23.49

    65

    $41.27

    45

    $ 28.56

    70

    $ 56.77

    50

    $ 23.69

    75

    $ 90.38

    55

    $ 27.83

    80

    $ 131.260

    60

    $ 31.95

    85

    $ 202.25

    $10000 "Final Expense" Whole Life Graded Coverage

    Age

    $ Mo.

    Age

    $ Mo.

    40

    $ 21.06

    65

    $28.967

    45

    $ 25.18

    70

    $ 39.30

    50

    $ 17.249

    75

    $ 89.618

    55

    $ 20.003

    80

    $ 117.89

    60

    $ 22.755

    85

    $ 179.22

    No Exam, but possibly a phone interview

    Many burial policy insurers will have 10-15 minute home office interviews using the telephone. They are looking for the use of prescriptions that do not come up on their prescription check and assessing cognitive function.Be alert!

    Final Expense Policy Features

    There are fewer riders associated with simplified issue policies than traditional term, but living benefits such as the accelerated benefit for terminal illness, and chronic illness are fairly common. Additionally, some final expense policies have a small cash component and have loan provisions.

    Contestability

    The contestability laws are the same for all types of life insurance policies. That is, the carrier has two years from the origination of the policy to contest the benefit payout on policy where the application contained material misstatements.

    What Final Expense  Life Insurers Will Take Into Consideration with Type 1 Diabetes

    As stated before, simplified underwriting is  concerned with type 1 diabetes.  Unlike traditional underwriting that grades on a scale, "final expense" is a yes or no proposition.

    Note that "yes" is divided into first-day coverage and "graded" categories. The best type 1 diabetes offers are generally not "graded". So, full coverage would begin on day 1.

    Final expense policies contain "knockout" questions and prescriptions. Since insulin use before age X (company specific) is a  common "knockout" question on many these policies, the only way to get ‘knocked out" if you answer NO is to  answer YES to a different "knockout" question....or you take a type 1 medication that is associated with another  "knock-out" diseaseThis is a circumstance that your agent can help with.

    Knockout questions tend to revolve around organ transplant, heart attack, stroke, cognitive function, insulin use, amputations and some of the heavy drugs these conditions require for treatment.

    Next Step For Final Expense with Type 1 Diabetes

    Because most final expense underwriting rules differ wildly, it's unusual that you can just go to the final expense quote tool and start. The customized quote form will yield a far more accurate result. However instead of instant quotes you may wait 24 hours. 

    If however, you want to get an idea of final expense pricing you can try the final expense quote tool. Just remember to use the "final expense" quote tool which is different than the quote tool on this page which is limited to term quotes.

    Upon receiving your quote request, we will be in touch as soon as possible (often in minutes), and we will help you through the process. The whole process shouldn't take more than 30-40 minutes.

    We are committed to a transparent pricing process and are happy to share a computer screen with you or send a video of the method used to get your rate. If you have any questions, please contact us.

    ​​​Guaranteed Life Insurance for Type 1 Diabetes

    As a stand-alone condition, type 1 diabetes may not  require the use of guaranteed life insurance.  The primary reasons that an applicant would need to go the guaranteed route is if the type 1 diabetes was paired with a condition that could not qualify for graded a final expense policy or insulin use began too early to get an offer from a carrier that operates in your state.

    If this describes your situation, keep reading.

    Pricing for Guaranteed Issue policies

    Guaranteed policies should only be used as a last resort. In addition to the benefit grading provisions that make the policies toothless during the two or three year grading period, they are the most expensive policies sold.

    Male Monthly              Guaranteed Rates

    Age

    $10000

    $25000

    50

    $44.097

    $108.856

    55

    56.50

    $138.24

    60

    63.17

    $154.92

    65

    73.09

    $179.73

    70

    93.14

    $229.85

    Female Monthly       Guaranteed Rates

    Age

    $10000

    $25000

    50

    $34.47

    $84.79

    55

    $39.86

    $96.64

    60

    $45.14

    $109.84

    65

    $54.51

    $133.27

    70

    $70.41

    $173.03

    How Guaranteed Life Insurance Works

    With only the requirement of age (usually 50) and citizenship, guaranteed issue life insurance policies have a death benefit that ranges from $5000-$50000. Such plans are exclusively whole life insurance.

    However, all guaranteed issue policies are "graded".  Generally, the grading represents a 2 or 3 year period that the policy must be in force before a full death benefit will be paid.

     Like "final expense" policies, guaranteed policies use a two or three year period in which the benefit increases to the face amount over the contractual time period. These policies commonly pay premiums plus interest if you die if you die after one year but before two; and full face amount after two years.

    Also, like the "final expense" write up says, these provisions are a way for the carriers to provide coverage while limiting their risk.

    No Exam Required on guaranteed policies

    There is no exam for guaranteed life insurance. After all, it's guaranteed to be issued regardless of your health.

    Contestability on Guaranteed issue policies

    Although the contestability laws are the same as other policies, beyond age and citizenship, it's difficult to see where contestability may arise in a guaranteed issue case.

    Next Steps for Guaranteed Issue Policy with Type 1 Diabetes

    The guaranteed issue process is lightning fast and can be handled over the telephone in a matter of minutes. Give us a call or email us.

    Why You Should Use an Independent Agent when Shopping for Life Insurance with Type 1 Diabetes

    In addition to reassuring you that life insurance is attainable with type 1 diabetes, this article pointed out that insurance companies have different pricing and underwriting standards from one another.

    Furthermore, these underwriting differences are a reflection of the company's appetite for a specific health risk. For example, Prudential Financial may have more of an appetite for the risk that type 1 diabetes  presents than say, Banner.

    In this case, the underwriting grade will reflect this increased appetite.So, if your Agent only represented one carrier and you found out later that you could have gotten a rate 35% or 45% better, how would you feel? You'd probably be sad like the puppy or mad at the agent or yourself or both.

    So it's crucial that your Agent represent multiple carriers. In fact, most good independent agents will have access to over 40 or 50 carriers. This ensures the best chance at the best rate.

      Key Takeaways

    • Access to more carriers will result in better pricing.
    • It may be worth paying slightly more if there is a strong permanent conversion product.
    • Only independent brokers have the freedom to offer the best deal at all times.

    ​​​Thank you for choosing the Life Insurance Help Desk to research life insurance with type 1 diabetes. We are committed to a totally transparent process (we'll even share our computer screen with you if you'd like), and making the application process as painless as possible.

    Should you have any question, please do not hesitate to give us a call or contact us via email.

    James Tobin, CFP
     

    Jim Tobin is the owner of Life Insurance Help Desk, a Fairfield County, CT. life insurance agency. You can find him on Google + and Facebook. Over the past 10 years, Jim has used his CFP-financial planning designation to help individuals with their life insurance needs. In addition to working with life insurance clients, Jim teaches ESL classes in his spare time. He resides with his beautiful wife Nicole and the 3 cats that rule their lives..