How would being a type 2 diabetic affect a life insurance application?
Our client is a non-smoking gentleman, aged 45, who was diagnosed with diabetes type 2 when he was 32. He was looking for life insurance of £50,000 over 22 years to protect his family, should he pass away. His last HBa1C reading was 7.8. He had a BMI of 27 (very normal), and no related issues such as high blood pressure or raised cholesterol.
What is Type 2 diabetes?
Diabetes is a long-term (chronic) condition caused by too much glucose, a type of sugar, in the blood. It is also sometimes known as diabetes mellitus.
There is estimated to be over 4 million people living with diabetes in the UK at present. Type 2 diabetes accounts for around 90% of all people with diabetes in the UK and is treated with a healthy diet and increased physical activity. (Diabetes UK Jan 2019)
Our process and advice
At Future Proof, we have access to specialist insurance companies who don’t deal directly with the public, but who offer more specialised policies, designed to provide cover where other major providers can’t.
Our research process involves us contacting many insurers to find out the best possible outcome for our clients, which avoids any nasty shocks later on during the underwriting process.
Would the insurer add a ‘loading’ to their standard premium? (this is an additional sum charged on top of their standard monthly premium to reflect their additional risk).
Might they decline the application? We want to avoid wasting time by making applications which may be declined.
How does this condition affect a life insurance application?
The good news is that you should be able to get life insurance cover, and sometimes it will be available on standard terms (no price increase or loading). However, it is more common for premiums to be loaded or rated (50%-150% increase on premiums would be fairly typical). The final ‘underwritten’ premium will depend upon several factors:
- Last HbA1C reading
- Height and weight (Body Mass Index or BMI)
- Blood pressure and cholesterol levels
- Any other related medical issues or complications
- A diabetic who smokes could also have a significant effect upon the premium
We discussed our client’s medical situation with the UK’s leading insurance companies.
We found that there was only one company who would increase the basic premium by 50%. Others said that they would increase the basic premium by 75%, or 100% and four others said between 125% and 150%.
One insurer quoted the cheapest premium initially of £9.15 per month for £50,000 of life cover over 22 years. However, when they took into account his diabetes decided to increase his premium by 125%. Taking the final premium to over £20 per month.
One insurer who on the face of it was the 5th most expensive at £11.22 per month. Increased the monthly premium by 50% to £17 per month. A saving of approximately £792 over the full term of the policy.
This really does demonstrate that if you have a medical condition which you think may affect the life or critical illness insurance application, you need to speak to a specialist adviser who can offer you expert advice.
All our case studies are based on actual client scenarios, many of which pre-date 2020. We are confident that the acceptance decision made by the insurers would still be offered. Although it is likely that the rates will have changed, your own circumstances will determine whether what amount will be payable by you and would be fully discussed with you before any plan is implemented.
Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.
Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.
Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!
An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
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Interested in related stories?
Take a look at our handy guides ‘What Cover is Right for me?’
Do you suffer from a medical condition and concerned you can’t secure Life Insurance? Please view our ‘Medical Guides’ for further information.
Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success. All applications are subject to underwriting.
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