Being refused life insurance doesn’t mean you have run out…
The answer is yes! It’s completely possible to obtain life insurance if you’re living with type 2 diabetes.
Many think that due to their condition they can’t take out life cover, however, this isn’t true.
Taking out life insurance is a simple and cost-effective way of protecting your loved ones.
But is it as easy to obtain life insurance with type 2 diabetes and how much will premiums be compared with standard life cover?
Simply get in touch today for your free quotes.
Read on for our complete guide to securing life insurance as a type 2 diabetic…
Yes, it’s likely that your condition will have an affect on your ability to secure life insurance - but that doesn’t mean it’s impossible.
You may experience inflated premiums as a result of your condition, or in severe cases, you may be declined altogether.
As type 2 diabetes is easier to control than type 1 diabetes, insurers will need to see that you’re taking steps to manage your condition.
For example, if you’ve developed type 2 diabetes as a result of becoming overweight, it will work in your favour to show that you’re moving towards a healthier lifestyle.
You may want to consult your GP before you apply for life insurance to gather up to date information about your condition.
This will help to give the insurer the most accurate understanding of your condition.
Having a condition, such as type 2 diabetes, highlights the need to have adequate life insurance in place to protect your loved ones if the worst were to happen.
Type 2 diabetes is predominantly caused by a lack of exercise, an unhealthy lifestyle and being overweight.
This can lead to additional health concerns such as a heart attack or other heart conditions.
If the worst were to happen, could your loves ones:
A pay out from a life insurance policy could cover all of these things, helping to give you peace of mind.
While many insurers may decline your application if you have type 2 diabetes, there are a range of specialist insurers which will still offer cover.
Our dedicated impaired life team can save you time and money. They’ve helped to secure cover for 45% of applicants declined elsewhere.
There are different life insurance policy types, all suited to protecting different aspects of your life. These are:
Which one is best for you will depend on how well it meets your needs.
But how are these cover options effected by type 2 diabetes?
Term-based life insurance
Securing term life insurance with type 2 diabetes is possible. However, it won’t be as simple as obtaining cover on standard terms.
With term life insurance, you’ll be covered for a specific period of time (the term) and if you pass away during the term your loved ones will receive a pay out.
You’ll be required to provide medical information at the point of application in order for insurers to assess the level of risk you pose.
Due to this, your application may have to undergo manual underwriting or in some severe cases, you may be declined.
Whole of life insurance
A whole of life policy is a form of life assurance, as you’ll be covered for the rest of your life.
Due to this, your loved ones are guaranteed a pay out when you pass away (not if).
At the point of application you’ll need to provide medical information so insurers can mitigate the risk you’ll pose.
You’ll also be required to pay premiums for the rest of your life to keep your cover in place.
For these reasons it’s likely that whole of life insurance will be expensive for those with type 2 diabetes so it may not be the best option.
Over 50s plan
If you’re aged 50 – 85 and a UK resident with type 2 diabetes, you might want to consider an over 50s plan.
With an over 50s plan, you’ll be guaranteed acceptance, without having to share any medical information.
It’s important to be aware that to compensate for the unknown risk, many insurers add a waiting period to their over 50s policies.
This refers to the first 12 – 24 months of the policy where if you pass away due to natural causes, your loved ones won’t receive a pay out. However, the premiums that you’ve paid will be refunded.
You may also experience slightly higher premiums due to the unknown risk and your sum assured is likely to be capped (typically at £25,000).
If you’re hoping to secure cover without providing information about your diabetes, this is an ideal option.
When calculating your monthly premium, insurers will take into consideration different aspects of your condition (as well as how you’re managing it).
Factors taken into consideration are:
This, along with standard information such as your age, smoking status and medical history, will allow the insurer to calculate the level of risk you pose and how much you’ll pay for your premium.
In some cases, you may be asked to undergo a medical exam.
Some insurers reward good management of your condition with a reduction in premiums.
If you can prove you are taking steps to improve your condition (such as leading a healthy lifestyle with a balanced diet) your premiums could be lowered.
You may want to keep a diary of everything you’re doing to help manage or improve your condition, such as logging exercise and keeping a food diary.
It can be tempting to deny having type 2 diabetes when applying for life insurance in order to secure a lower premium.
However, if upon your passing it’s determined you knowingly suffered from type 2 diabetes when the policy was arranged, your cover will be deemed invalid and no pay out issued to your loved ones.
Critical illness cover allows you to make an early claim on your policy if you’re diagnosed with a life-changing, but not terminal illness, that’s listed within your policy.
While critical illness cover is possible to obtain if you suffer from type 2 diabetes, it’s likely to contain some exclusions.
This means if you suffer certain illnesses (those associated with diabetes such as heart disease or stroke), you won’t be able to make a claim.
Insurers are more likely to offer critical illness cover to those with type 2 diabetes than type 1 diabetes as the condition is more manageable.
However, it’s likely the policy will need to undergo manual underwriting.
In some rare cases, you may be declined cover.
Diabetes isn’t typically covered by critical illness, so if you’re diagnosed during the term of your policy you won’t be able to make a claim.
No, type 2 diabetes isn’t typically covered by critical illness.
So, if you’re diagnosed during the term of your policy you won’t be able to make a claim.
Type 2 diabetes is not a condition covered by terminal illness cover.
Terminal illness cover allows you to make an early claim on your policy if you’re diagnosed with a life-threatening illness and predicted to pass away within 12 months.
All term policies taken out through Reassured come with terminal illness cover as standard at no extra cost.
While both conditions affect insulin levels within the blood, there are some slight differences.
Type 1 diabetes is a result of your genetic makeup, meaning you’ll be born with the condition, whereas type 2 happens as a result of your lifestyle.
Type 2 diabetes is typically caused by a poor diet and unhealthy lifestyle (being overweight).
As a result, type 2 diabetes is more manageable and can be controlled by keeping a healthy lifestyle.
Read our 2020 guide to securing life cover with type 1 diabetes »
Even if you‘ve been declined for life insurance in the past, Reassured can help you to find cover.
There are still options available to you despite previous rejection.
We work with specialist insurers who provide life insurance to those who struggle to secure conventional cover.
Our impaired risk team have helped to secure cover for 45% of applicants who’ve been declined elsewhere.
If you’re diagnosed with type 2 diabetes during your policy, there’s no need to inform your insurer.
As long as you were honest on your application and the condition was not pre-existing, then being diagnosed during the term won’t invalidate your policy.
If you pass away, due to a diabetes-related illness or not, your beneficiaries will still receive a pay out.
Securing life insurance with type 2 diabetes doesn’t have to be hard.
The easiest way to ensure you’re getting the right policy at the right price is to compare quotes.
By using an award-winning broker service, such as Reassured, we can compare quotes - saving you time and money.
Our specialist team could help you find cover, even if you’ve been declined before.
Why not get in touch for your free, no-obligation quotes?
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