Can You Get Life Insurance With Diabetes?

Can you get life insurance with diabetes?

You may be able to get life insurance if you have diabetes in Canada, but this pre-existing health condition can make it more difficult. Your eligibility and cost depend on your overall health status—not just whether you’re diabetic—and insurance companies will consider a number of factors when reviewing your application.

How diabetes impacts life insurance eligibility

Life insurance eligibility is all about assessing risk factors, and diabetes is a chronic condition linked to higher chances of developing other health issues that may affect life expectancy.

When an insurer views someone as “higher risk” due to their health or lifestyle, they may charge higher life insurance premiums or, in some cases, decline coverage altogether.

Your eligibility and rates will depend on your personal risk profile, which includes factors like the type of diabetes you have, your blood sugar control, and how long it’s been since your diagnosis.

The tables below show the risk levels for a person with diabetes, depending on age and the number of years since the diabetes diagnosis. Note that this is on average; every situation and individual is unique, and each application is assessed as such.

Type 1 diabetes is considered riskier than Type 2.

Type 2 diabetics are considered less at risk than Type 1 diabetics.

Source: The Public Health Agency of Canada found that  “people with diabetes are more likely to die prematurely than people without diabetes in every age group.”

Types of insurance for people with diabetes

There are three types of life insurance for diabetics in Canada:

• Fully underwritten (traditional life insurance)
• Simplified issue
• Guaranteed issue

You can find term and whole life or permanent life insurance policies in each category. In addition to life insurance companies, your employer may offer group life insurance—and these policies often have lower premiums (but less coverage).

Each type of policy varies by coverage, price, and how much medical information you must provide. The insurance provider will ask certain questions to determine your life insurance rates and eligibility for specific insurance plans.

Fully underwritten term life insurance policies are the best and most affordable choice for most people who can qualify.

What to expect when you apply for life insurance with diabetes

The application process will depend on the type of insurance you’re applying for:

• People with diabetes can expect to answer health questions and possibly complete a medical exam when applying for fully underwritten life insurance. 
• If you’re applying for a simplified-issue policy, you’ll probably need to answer some questions but may not need to have an exam. 
• Guaranteed-issue policies are often called no-medical policies since you don’t need to answer health questions and you’re guaranteed to be approved.

We recommend that you apply for a fully underwritten policy first. There’s no downside to applying, and it gives you the best chance of securing affordable life insurance, even if you receive a rating.

What to do if you’re denied life insurance coverage

If you’re denied for a fully underwritten policy, you have a few options:

• Appeal: If you were denied for a standard life insurance application, you can reach out to the underwriter for an explanation. Do this if you feel you’ve been unfairly denied.
• Apply for a fully underwritten policy elsewhere: Every company assesses risk differently. You might find that another company is happy to insure you with your specific diabetes health-related risks.
• Apply for a simplified or guaranteed policy: If you find that no company will insure you for a standard, fully  underwritten policy, consider a simplified issue life insurance or guaranteed issue life insurance policy that requires less extensive medical information. Note that these policies can cost 10–20x more than fully underwritten ones, and coverage limits are typically low.

Alternatively, try working with an insurance broker or advisor who can help you find a company and policy that’s a good fit for your health issues.

FAQ: Life insurance for diabetes