Type 2 Insulin-Dependent Diabetes
If you depend on insulin to control your diabetes, getting term life insurance is very tough. Fortunately, it’s not your only option. If you do want a term, acceptance depends on your risk factors. You probably have many them at this stage — even if you aren’t aware of it.
Obtaining term coverage requires a medical exam, and that’s usually not a good thing for those who are insulin-dependent.
“About 90% of the time, you’re wasting your time if you take a medical exam,” Scholz said. “They’ll almost always find risk factors — and if they do, you’re not going to get issued.”
If you are eligible, rates are lower, and you can get much more coverage. But most insurers want to see an A1C level of 7.0 or less, although a few will go as high as 8.5. The best rate is about double the cost of standard insurance. Our experience has shown that Banner and American General are the best companies to work with if you try to go this route.
Another consideration if you apply for term life: The insurance company might discover risk factors you didn’t know you had, and you could be declined. Once the company’s investigation results are on the record, they’re available to no-exam insurers, who can use them against you. For that reason, we recommend that you get a no medical exam policy first. That way, you’re covered no matter what, and you can always switch to a term policy later if you qualify.
What if you don’t qualify for the term or know you couldn’t possibly?
Don’t despair. Whole life insurance without a medical exam is still available to you. It comes in two basic flavors: “immediate death benefit” plans, which provide full benefits to your loved ones upon your death no matter how long you’ve owned the policy, and “graded benefit” plans, which offer partial payments if you’ve held the policy for less than 2 or 3 years and provide full payment if you’ve held it longer.