Diabetes is a common, treatable condition which affects up to 30 million Americans. By maintaining a healthy lifestyle and following their doctor’s orders, diabetics can live full, active lives. Unfortunately, many diabetics often have problems finding life insurance.
Many insurance providers either offer high rates or just outright deny policies to diabetics. If you’re diabetic, lack of life insurance can affect your family’s finances should you pass away unexpectedly.
There’s good news, however. No matter what your current age or health condition is, there are options available for life insurance. One of these is a no exam life insurance policy, available for diabetic. Here’s what you need to know.
The Possibility of No Exam Life Insurance For Diabetics
Life insurance rates are set by a variety of individual factors. These include your age, body weight, smoking habits and overall health history. Pre-existing conditions, including diabetes, indicate to insurance companies that a person has a higher risk of developing medical issues than someone without such conditions.
Diabetes is relatively common. Over the years, insurance companies have increasingly catered to this demographic. There are many different types of diabetic life insurance policies. One of the most popular and effective policies is called a No Exam Life Insurance Policy.
Types of No Exam Life Insurance Policies for Diabetics
These are policies which require no medical exam prior to qualification. A traditional underwritten policy will require an exam in a doctor’s office. This can lead to rate increases if the exam uncovers the applicant has on-going medical issues.
There are many different types of no exam policies available, including many specifically tailored and created for diabetics. Some common types include:
- Term life
- Universal life
- Permanent life
Generally, no exam policies have a face value of anywhere between $5,000 to $1,000,000, depending on several factors. Some policies also offer additional “living benefit” riders. This allows for payouts if the policyholder develops an illness which has a medically-determined life expectancy of 12 months or less.
How to Apply for a No Exam Policy
First, you’ll want to shop around. There are a variety of policies tailored to diabetics. So even though you might have more limited options than a non-diabetic, you still have many types of policies to choose from.
No exam policies typically involve a phone interview with a representative of the insurance company. They’ll ask you some general health questions. They will likely also ask if you’ve ever been denied a life insurance policy previously. If so, you likely won’t be eligible this time. In this case you’ll want to look into guaranteed issue polices.
Diabetes has many different types. Most common types of diabetes are usually covered by no exam policies. This includes:
- Type 1 Diabetics
- Type 2 Diabetics
- Insulin-Controlled Diabetics
- Diabetics who use Oral Medications
- Diabetics up to 89 Years of Age
Disadvantages of No Exam Life Insurance
No exam policies are not always the first choice of every applicant. Policies typically cost more when no exams are required. The insurance company is taking a bigger risk on the applicant, since they often don’t have a complete picture of the person’s current health. When diabetes is known by the carrier, this can also generate declines or highly rated policies, depending on where you apply.
Some no medical policies have a waiting term, too. This is usually a two year period where the death of the policyholder results in reduced benefits, or none at all, depending on the policy and carrier offering coverage.
For instance, if the policyholder passes away within the first year of purchasing the policy, payout could be only 40%. Within two years, this may increase to 75%. Only in the third would the full policy go into effect.
Advantages of No Exam Life Insurance
There are plenty of reasons many diabetics prefer non-med policies, however. First, there’s no doctor’s visit required. This means no traveling to the doctor, no intrusive exam and even no drawing of blood. For some people, this lack of needles is all the reason they need.
No exam policies can also be very fast to get issued, meaning you’re covered quicker. Some companies offer an approval process which takes only a day or two. Note that other no exam life policies don’t operate this quickly, so be sure and read the fine print before committing to anything.
One of the most common reasons people prefer no exam insurance is because a pre-existing medical condition is keeping them from a traditional policy. Even if the premiums cost more, many people find the benefits of life insurance to be well worth the purchase price.
When to Purchase Life Insurance
Basically, the sooner you can purchase life insurance, the better deal you’ll often be able to find.
Even if you’re young, you should own at least a basic life insurance policy in many cases. Accidents and illness can occur without warning. If you’re one of the main providers for your family, you want to keep them financially secure should a worst case scenario occur.
Basic life insurance policies can provide benefits to help with funeral expenses, medical costs, or other lingering debts and obligations. Larger policies can provide a temporary financial cushion to help your family with the sudden loss of income where need, also.
Cost and death fixed benefits can be a great way to purchase a larger policy without having to break your family budget. In essence, you’re able to lock in your rate for life, or at least a guaranteed term ranging from 10 to 30 years. If you purchase a policy relatively young and live a long life, a properly constructed contract could beat inflation and rising insurance costs, potentially creating a self-sustaining policy.
Diabetes, Life Insurance and You
No matter what type of diabetes you have, and how severe your medical issues are, no exam life insurance policies are available for you. While diabetes is manageable, diabetics do have an increased potential for health problems in the longer run.
In the event you can no longer be around to take care of your family, life insurance can provide valuable resources.
Life insurance also provides peace of mine. Nobody wants to dwell on their own death. With a little bit of financial planning, however, you can ensure financial security for your loved ones. Fortunately, no physical life insurance is often an effective, affordable program for many diabetics as well as others with pre-existing health problems.