Best Life Insurance for Diabetics in Canada

You may think that life insurance will be seriously expensive or even out of reach if you are a diabetic. But we have got some good news. Life insurance for people with diabetes is not always prohibitively expensive.

Although, you are likely to pay more than someone who is of your age and gender and does not have diabetes, if you can demonstrate that your condition is well managed, you may still be able to receive affordable rates.  

Why does diabetes matter to life insurance companies?

Life insurance providers must evaluate their client’s potential risk factors. Not surprisingly, any health condition that increases the risk of death — such as diabetes — is flagged as high risk. This is because the life insurance provider will have to issue a payout to the life insurance policyholder’s beneficiary without collecting many life insurance premiums.

Diabetes is a health condition in which the body is not able to produce adequate levels of insulin or is not able to properly use the insulin it makes. Insulin is a hormone produced by the pancreas and helps control blood sugar levels in the body. Diabetes — especially when not well managed — increases the risk of premature death.

People with diabetes are more likely to have heart disease, stroke, and other complications. For insurers, people with diabetes fall into a high-risk category. To compensate for this high risk, life insurance providers charge higher rates.

Here are some important statistics to demonstrate why diabetes matters to life insurers:

• Canadians with diabetes have a higher risk of premature death than those without it in every age group
• Among younger Canadians (aged 20 to 39 years), those with diabetes have 4.2 to 5 times higher all-cause mortality rates
• Among Canadians aged 40 to 74 years, people with diabetes have two to three times higher all-cause mortality rates

With that said, different types of diabetes affect your life expectancy differently.

• Type-1 diabetes – This is a chronic health condition in which the pancreas does not produce any insulin. Because of this, it is also called insulin-dependent diabetes. Since it usually is diagnosed early in life, it can put a lot of stress on vital organs over the years. Life insurance premium rates for type-1 diabetes are significantly higher than for non-diabetics.
• Type-2 diabetes – In this condition, the body cannot make enough insulin. It is the most common type of diabetes in Canada, with roughly 90% of people with diabetes having it. Type-2 diabetes is often milder than type 1. However, it can still lead to major health complications. If you have type-2 diabetes, expect to pay more for life insurance than those without it.
• Gestational diabetes – This is a temporary form of diabetes that affects pregnant women who have never had diabetes before. It usually appears during the second and third trimester and affects roughly 18% of pregnant women. Applying for life insurance when you are pregnant and have gestational diabetes may not be the best idea. That is because the life insurance company will underwrite you as though you are a diabetic. And that would mean higher life insurance premium rates. Since this condition is only temporary, applying after (or before) pregnancy makes sense.

Since having pre-existing conditions like diabetes complicates getting life insurance, it is recommended to speak with an advisor before purchasing a life insurance policy.

Can I get life insurance if I have diabetes?

The answer is yes. Many providers offer life insurance for diabetics in Canada.

Like others, diabetics can apply for a traditional life insurance policy. These policies are fully underwritten. Alternatively, they can also opt for a non-medical exam life insurance policy.

If you have diabetes, we suggest you first give traditional life insurance a try (even if you think your condition is serious). How you see your health is not necessarily how an underwriter sees it. You may qualify for a standard insurance policy even if you thought you would not.

Traditional life insurance policies are more affordable and flexible than no-medical policies. They also offer higher life insurance coverage amounts. So, applying for such a life insurance policy makes a lot of sense.

Term life insurance coverage provides an affordable option for individuals with diabetes, offering reasonable premiums and essential protection for financial obligations.

Traditional life policies require a medical exam. The insurer will decide on your application based on the exam results, among other things.

If you do not qualify for traditional life insurance, you can always go for a no-medical-exam insurance policy. You will not have to take a medical exam, though you may have to answer a few health-related questions. And in many cases, the life insurance coverage is almost guaranteed.

Find the best life insurance for diabetic

Finding the best life insurance for diabetics requires careful consideration of several factors, including the type of diabetes, the severity of the condition, and the individual’s overall health. Working with a reputable insurance company that offers affordable rates and flexible policy options is essential. Some of the best life insurance companies for diabetics include:

• Manulife
• Canada Life
• Sun Life
• Desjardins
• Industrial Alliance (iA)
• RBC Insurance
• Beneva

These companies offer a range of policy options, including term life insurance, permanent life insurance, and guaranteed issue life insurance. By comparing quotes and understanding each insurance company's specific benefits, you can find the best insurance coverage tailored to your needs.

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Insurance Options for Diabetics

Diabetics have several life insurance options to choose from, depending on their individual needs and circumstances. Here are some of the most common types of insurance policies available to diabetics:

Types of Insurance

• Term Life Insurance: This type of policy provides coverage for a specified period, usually 10, 20, or 30 years. Term life insurance is often the most affordable option for diabetics, offering substantial coverage at lower premiums. Applicants can get term life insurance coverage up to age 75 and permanent coverage up to age 90. It’s ideal for those looking to cover specific financial obligations like a mortgage or children’s education.
• Permanent Life Insurance: This type of policy provides lifetime coverage which is different with term life insurance and includes a cash value component that can be used to supplement retirement income or pay medical bills. Permanent life insurance policies, such as whole life or universal life, are more expensive than term life insurance but offer the benefit of lifelong protection and potential cash value growth.
• Guaranteed Issue Life Insurance: This type of policy is designed for individuals who have been denied coverage by other insurance companies. Guaranteed-issue life insurance policies do not require a medical exam and are often more expensive than other types of policies. They are a good option for those with severe diabetes or other health issues that make qualifying for traditional life insurance difficult.

How do insurance companies price a policy for a diabetic?

As a diabetic, several factors can impact your life insurance rate. These are:

A permanent life insurance policy can be particularly beneficial for diabetics, as it typically allows individuals to maintain coverage for life at their pre-diagnosis rates, provided that premiums are paid.

Age at diagnosis

Generally speaking, the longer you have had this condition, the higher the insurance cost. So, if you developed diabetes as a child, expect to pay higher life insurance premiums than someone with late-onset diabetes. Additionally, the age at diagnosis can also influence the death benefit, affecting the payout beneficiaries receive upon the policyholder's death.

Type of diabetes

Type 2 diabetics usually get better life insurance rates than those with type 1. That is because it is considered more manageable than the latter.

Complications

A diabetic-related complication can bump up your life insurance premium. Common complications due to diabetes include:

• Kidney disease
• Macrovascular problems
• Diabetic neuropathy
• Diabetic retinopathy

If you have a diabetic-related complication and are not managing it well, you will have to pay more for life insurance coverage.

Severity

Life insurance providers will look at your A1C levels to judge the severity of your diabetes. A reading between 6 and 6.9 usually is viewed favorably and has a minimal impact on the rates. A1C levels in the range of 7.0 to 7.9 may increase your premiums, but the spike is not likely to be a big one. An A1C reading of 8.0 or above may lead to a riskier classification. Consequently, you will have to pay significantly more for life insurance.

Treatment and control

The type of treatment you are taking for diabetes impacts your premium rates, partly because it is an indicator of the severity of your condition. Diabetics who are managing their condition well, will get a better rating than those who are not. Likewise, people on oral diabetic medications will receive a more favorable rating than those who need insulin shots.

Regardless of the form of diabetes or its severity, you will always get better rates if you are on treatment and managing it well. A type 1 diabetic who takes daily insulin shots may have to pay less for life insurance coverage than a type 2 diabetic who is not taking any treatment.

Other medical conditions

The presence of other medical conditions, like high blood pressure, may increase the risk of premature death. As a result, you will have to pay more for life insurance coverage. Similarly, if you are diabetic and smoke, you will probably get a high-risk classification and a significantly higher rate.

What sort of questions do life insurance companies ask someone with diabetes?

As part of the application process, life insurance companies will ask you several health-related questions. Diabetics may have to answer a few extra questions related to their medical condition.

Here are the examples of questions that insurance carriers may ask diabetics.

• When did you receive the diagnosis?
• How old were you when you got diagnosed?
• What type of diabetes do you have?
• Your latest A1C reading?
• What is the date of your latest A1C reading?
• Your average A1C reading for the last 12 months?
• How often do you take a diabetic checkup?
• Do you take insulin? If yes, how many units a day?
• Do you take oral medication? If yes, which ones?
• How much do you weigh currently?
• How much did you weigh a year ago? Has there been any change, why?
• What is your current height?
• What is your blood pressure?
• Do you measure your blood sugar daily?
• What is your average fasting blood sugar?
• Do you have any diabetes-related complications?
• Are you on dialysis?
• Have you had any amputations?

What are the pros of a simplified issue life insurance policy?

A simplified issue is a type of no-medical-exam life insurance. You must not take a medical test but must answer a few simple health questions. The insurer will make a decision to accept or reject you based on the information you provide.

Simplified issue insurance is a good option for life insurance for diabetics because of the following reasons:

No medical test  

Since it takes the medical exam out of the equation, simplified issue insurance is easier to qualify.

Quick approval

The traditional life insurance policy can take up to 6 weeks for approval. If you cannot afford to wait that long, simplified issue insurance could make sense for you. You can get approved within a few days, sometimes even instantly.

More affordable than guaranteed issue life insurance

Another option available to diabetics is guaranteed issue life insurance. Like a simplified issue, it is also a type of no-medical-exam life insurance. However, you do not need to answer even health questions to qualify. All the same, Simplified Issue is a much better option for most diabetics since it is more affordable life insurance and offers higher life insurance coverage amounts.

Where can people with diabetes get life insurance?

You can count on Dundas Life to help you get the optimal life insurance coverage at competitive rates. We work with leading life insurance providers in Canada and can help you find the best life insurance for diabetics. We have your back whether you want a traditional or no-medical-exam life insurance policy.

Conclusion

Getting life insurance may seem tricky if you have diabetes — but that is not necessarily so. Plenty of insurers offer life insurance for diabetics at affordable rates. So, do not assume that you are uninsurable. You can easily find the right life insurance policy by working with an independent broker like Dundas Life.