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.
Your cover will either be level (sum assured stays the same) or decreasing (sum assured reduces over the lifetime of your policy).
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.