Life Insurance With Diabetes Type 2, What is the Best Coverage ?

Getting insured as a type 2 diabetic might seem difficult, but this doesn’t mean that you don’t have any chance at all. You still have plenty of options.

It’s true that diabetics can be turned down by underwriters. This is because insurers naturally favor applicants with a very low health risk. And anyone with a life-threatening medical condition who luckily get qualified for a policy often pays a high premium. It’s no different if you have a type 2 diabetes. You’ll be classified as high-risk because the condition can cause several complications, such as a stroke and a heart disease.

But having diabetes does not disqualify you outright for an insurance coverage. There are many insurance companies that you can try and you will most likely be qualified. In fact, there are insurers that specialize in high-risk insurance especially for people with a high-risk disease like diabetes. You can expect that the premium will be a little bit high, but again, you can always find a carrier that offers favorable rates.

Factors that Influence the Premium Rate for Type 2 Diabetics

Insurance companies have different benchmarks when it comes to accepting applicants with medical conditions. It’s the same thing when they evaluate type 2 diabetics—the premium rates are also normally different. This means you will have different risk profiles from different insurers and the premium assigned for each of these profiles will be calculated differently as well.

Generally, if you’re a type 2 diabetic, the premium that you’re going to pay for the policy will be highly influenced by the following factors:

Your Age When Diagnosed with Diabetes

With or without diabetes, age has always been a big influencing factor when it comes to calculating an insurance premium. Older people pay more premiums than younger ones. The older you are, the higher premium you’ll pay because your life expectancy is shorter.

But if you have a type 2 diabetes, age becomes even more significant because the insurer will also try to look at the specific age when you are first diagnosed with the disease.

The longer you have had diabetes, the more premium you’ll pay because it will be assumed that you’re prone to more complications from the disease.

The bottom line is, it matters little even if you’re still young as long as you have a type 2 diabetes. Once called an “adult-onset” disease because it is mostly found in adults, type 2 diabetes is also now prevalent to younger ones.

So, as long as you suffer from a disease like diabetes, your age at the time of diagnoses will be factored in and it will influence the amount of your policy premium.

Type of Diabetes You Suffer from

Insurers normally assign different premium rates for qualified applicants with different types of diabetes.

A type 2 diabetes is a more common disease than the type 1 diabetes. It is usually developed and discovered later in a person’s life, although as previously mentioned, even younger people can suffer from it now.

If you have a type 2 diabetes and you’re applying for a coverage, you will be viewed as a less risky applicant than those who have type 1 diabetes. Depending on the insurer, there’s a greater chance that you’ll get a much lower premium than the latter.

Your Blood Sugar Level and Hemoglobin A1C Count

Diabetes is mainly caused by the high level of sugar or glucose in a person’s blood. Whether you’re a type 1 diabetic or a type 2 diabetic, it is clinically certain that you have a high level of blood sugar in your bloodstream.

To determine the level of your blood sugar, you will be asked to undergo an A1C test (also known as HbA1c test, glycated hemoglobin test, and glycohemoglobin test).

The A1C test is a procedure in which your blood will be checked to see how high your glucose level is in the past three months. This is done to determine how well you manage and control your blood sugar.

The result from the test will be your A1C score. If you get a high score, it means you have a high average of blood sugar. If you have a high blood sugar average, you will get a high premium rate.

Normally, a person has diabetes if he or she gets an A1C score of 6.5 percent or higher. Anything below 5.7 percent is considered normal.

When you’re applying for an insurance policy, you can get a relatively lower premium if your
A1C level is below 7.0. This means that your glucose level is still controlled.

Anything between 7.0 and 7.9 still makes you eligible for a policy, but your premium rate will be a little bit higher but still affordable. A score of 7.5 or lower is considered an ideal number to still get an affordable rate.

An A1C score that’s between 8.0 and 8.9 makes things a little bit murky for you because this score tells the insurer that your blood sugar is poorly controlled and medications might not be working. You can still be approved though, but the chances of being denied coverage is very high.

If you have an 9.0 A1C score, you can expect an outright rejection on your insurance application. Your only chance at this point is to keep taking medication and hope you can keep your blood sugar level at least below 9.0 or even much lower so you can reapply. The other option

Your Body Mass Index (BMI)

Obesity is usually associated with several health issues, including diabetes. In fact, most type 2 diabetics are obese or considered overweight. This is the reason why most insurers view applicants who are overweight as having a high-risk medical condition. In other words, if you’re overweight, you’ll pay a higher policy premium.

When you apply for a coverage, the insurance carrier will check your body mass index (BMI) so they can assess if you are overweight. This gains extra significance for the insurer especially if you have a type 2 diabetes.

Basically, your BMI is the measure of your body fat which is determined by looking at the ratio of your weight to your height. This number will give the insurers the idea whether you have a normal weight or you are underweight, overweight, or obese.

In a formula, BMI is expressed as BMI = weight (kilogram)/ height (meters squared).

To calculate your BMI, start by dividing your weight in kilograms by your height in meters. When you get the quotient, divide it again with your height in meters. The resulting ratio is your BMI.

Let’s say your weight is 85 kilograms and your height is 1.78 meters.

To calculate your BMI, divide 80 by 1.78. The result is 44.9. Divide this number by your height again (44.9 divided by 1.78). What you’ll get is 25.2, which is your BMI.

Take note that this is the simplest way to calculate, but if you are using other units of measurement for your height and weight, then you might have to do a conversion first.

Clinically, anyone whose BMI is below 18.5 is considered underweight. The normal weight is somewhere between 19.0 and 24.9.

You’re already considered overweight if your BMI ranges between 25.0 and 29.9. You’re obese if you get a BMI of 30.0 and above.

From our given example, the BMI number of 25.2 is already considered overweight and most likely result to a higher policy premium.

Health Complications Caused by Your Diabetes

Type 2 diabetes leads to several health complications that range from a simple hypoglycemia to serious microvascular and macrovascular diseases that result to kidney problems, stroke, and heart disease. If you’re suffering from any of these diabetes-related health issues, the underwriters will most likely take this into account and give you a higher premium rate.

The Quality of Your Treatment

When deciding for the premium rate for applicants, most insurers do not only consider the presence of diabetes but the quality and regularity of treatment that the person undertakes to keep the disease under control. This means that when you apply for a policy, you should expect that your treatment history will be checked and you might even be asked to provide additional documents from your physician.

Your Family’s History of Diabetes

Type 2 diabetes is mostly attributed to genetics and other factors, so you should expect that the insurers will look into your family’s medical history and determine if the disease runs in your family.

Your Lifestyle (including alcohol and tobacco use)

Aside from genetics, an unhealthy lifestyle is one of the causes of type 2 diabetes. If you are not on a healthy diet, you smoke, and you drink alcohol, then you’re not helping your cause if you’re applying for an insurance coverage.

Take note that eating unhealthy food, smoking, and consumption of alcoholic beverages lead to the severity of diabetes and increase the risk of health complications.

If you have an unhealthy lifestyle, then you can expect your insurance to be loaded with a high premium.

Rate Classes You Can Qualify for if You’re a Type 2 Diabetic

Insurance companies usually classify applicants based on the scale of risks. As a type 2 diabetic who is trying to get a policy, you might be assessed with a relatively higher premium. There’s a great chance that you will find it difficult to get into the Preferred Plus or Preferred category; both require absolute clean bill of health. This doesn’t mean, however, that you wouldn’t get favorable rates.

Depending on your overall health condition, the severity of your diabetes, your treatment, medical history, lifestyle, and other factors, you will most likely be classified in any of the following health classes:

Standard Plus

Although getting a “preferred” rate is what everyone aspires for, that requires you to be in excellent health with no history of medical issues.

As a type 2 diabetic, a standard plus is the best health rate class that you can get. This is still difficult to acquire but not impossible.

To get a standard plus rate, your weight must be normal and your A1C must be lower than 6. A near-to-normal A1C rating is preferable.

You also have to prove that you have the diabetes under control, you’re on a good diet, have a healthy lifestyle, and you’ve been okay health-wise at least years since you get diagnosed with the disease.


As a type 2 diabetic, you can get a standard rate if you have a relatively good BMI and an A1C rating that is at least below 7.

A standard rate class also requires a proof of a good diet and lifestyle. Your diabetes must also be under control at least not less than three years since you received the diagnosis.

Basically, this rating is good for type 2 diabetics who can show that they have an average health despite their condition.


When you get a substandard rating, it means you are in poor health and your diabetes is potentially high-risk.

Most applicants who get a substandard rate are those whose diabetes has already caused health complication on their bodies.

You can still qualify for a policy even if you fall under this category but your premium rate will be higher and the amount will depend based on the level which you are tabled in.

Take note that in this health rate class, more levels are added and these are called table ratings which usually ranges from 1-10.

Normally, a substandard rate is jacked up 25% higher as you go down the table rating. The higher level you’re in, the more expensive the premium will be.

Your Top 5 Best Insurance Carrier Options

Different insurance companies offer different rates. Some are very strict in terms of accepting high-risk applicants like diabetics, but there are carriers that are more lenient and would be willing to give you an affordable rate depending on the severity of your condition.

If you’re a type 2 diabetic who is looking for a good insurance company, then here are 5 of your best options in no particular order:

John Hancock Life Insurance Company

John Hancock Life Insurance Company is without a doubt should be one of your best bets if you’re a type 2 diabetic and looking for a favorable life insurance rate.

A division of the financial services giant Manulife Financial Corporation, John Hancock is one of the so-called diabetics-friendly insurers. It prides itself on being supportive of diabetics and believes that anyone with the disease still deserves an affordable life insurance policy.

In fact, the company just partnered last year with the American Diabetes Association® (ADA) for an initiative that raises awareness for type 2 diabetes.

Various reports indicate that at least 90% of diabetic applicants were accepted and qualified for a policy at John Hancock and a staggering 88 percent of these applicants were given a very good rate.

What makes John Hancock unique is its “Vitality program” which is incorporated in its life insurance offering. This program encourages policyholders—especially those with a serious medical condition like diabetes—to live a healthy lifestyle. By doing so, the policyholder can get a reward in the form of premium savings that can go up to up to 15% of the coverage cost.

American National Insurance Company (ANICO)

Considered as one of the oldest and largest insurers in the United States, the American National Insurance Company (ANICO) is not only among the top no exam life insurance policy carriers but also a great provider of flexible health criteria for diabetics.

With ANICO, you can get a coverage that ranges between $250,000 and $500,000. If you have a controlled type 2 diabetes and diagnosed when you’re 50 years old or older, then you can easily get a policy with a standard rate or standard plus rate.

Just like John Hancock, it is said that ANICO is more lenient to diabetics than other insurance companies and it has one of the largest numbers of diabetic policyholders.

Sagicor Life Insurance Company

A subsidiary of Sagicor Financial Corporation Limited (SFC), the Sagicor Life Insurance is known for qualifying applicants with medical conditions, including diabetes. In fact, the company offers a no exam life insurance policy for diabetics.

If you’re a type 2 diabetic, you can try Sagicor Life’s term life insurance (simplified issue) or universal life insurance.

With Sagicor Life, you can get rated and receive a maximum coverage of $500,000 as long as your type 2 diabetes is controlled on oral medication and you’ve been diagnosed with the disease when you’re 50 years old or older.

As part of the condition, you also must not have any other ratable conditions and you can meet all the required rated criteria.

Mutual of Omaha Insurance Company

The Mutual of Omaha is another good option whether you’re a type 1 or a type 2 diabetic. It qualifies diabetic applicants for a final expense life insurance as long as they are diagnosed when they are 50 years old or older, follows a healthy lifestyle, and has no serious family history of medical illness. With this company, you can get as much as $250,000 worth of coverage.

Banner Life Insurance Company/William Penn Life Insurance Company of New York

A subsidiary of Legal & General America, the Banner Life Insurance Company or William Penn Life Insurance Company of New York is another good life insurance carrier to consider if you’re a diabetic.

What makes Banner Life different from other life insurance companies is its specific policy offerings for high-risk applicants, including diabetics. If you’re lucky, you can even get a standard rating from this company even if you have an uncontrolled type 2 diabetes.

Other Insurance Companies that You Can Consider

Aside from the aforementioned, there are many other insurance companies that can give you competitive and favorable rates. These include the Prudential, Lincoln National, National Life, Assurity Life, United Home Life, Phoenix, Fidelity Life, 5 Star Life, MetLife, AIG, SBLI, American Continental, TransAmerica, Protective, PacLife, American Amicable Life, Equitable Life, Foresters, American Memorial, United of Omaha, Americo, and many others.

Your Best Option if You Can’t Qualify Due to Poor Health

If you can’t qualify at all due to your severe diabetic condition, then your best resort is a guaranteed issue life insurance.

A guaranteed issue life insurance (also called an insurance of last resort) is a type of non-med policy that’s ideal for people who are 50 years old and above who can’t get a coverage because of their age and serious medical condition.

With a guaranteed issue life insurance, you can get a coverage immediately with no questions asked as long as you can pay a high premium.

The face amount for the guaranteed issue life insurance policy is usually small ($5,000-$30,000) compared to other types of life insurance products, but it’s still worth taking if you need it and have no other recourse.

Take note that a guaranteed issue life insurance usually comes with a graded death benefit which provides a limitation on benefits claim. This means that if you die before a prescribed period (usually 2 years), then your beneficiaries will only get an amount that is equal to your paid premium plus a 10% interest. However, if you die after that maturity period, then your beneficiaries can get the full amount of the death benefits.

There are many insurance companies that provide a competitive rate on their guaranteed issue life insurance products. If you think this is your option, then two of your best picks are the Gerber Life Insurance and the American International Group or AIG.

How to Get the Best Life Insurance Quotes for Types 2 Diabetes

To get started with your life insurance application, here are the steps that must be done, any good agent or agency will follow these steps. With Type 2 Diabetes, it is not about the lowest rate on the quote engine, but instead the company with the lowest rate for you!

Call Us so We Can Assess Your Situation

When you reach out to us, one of our expert insurance advisors will immediately assess your situation, look into your case, and begin the process of determining your best options.

We’ll Do a Quick Quote of Various Policy Options

Once we know your situation, we can do a quick quote from different companies so we can give you various options to choose from. We’ll evaluate these options in the context of your case and then we’ll give you our best recommendation. The last decision is still yours, but we’ll be with you throughout the whole process.

Submit Your Application

If you’ve decided on the insurance company that you want and the type of life insurance policy that you need, then you can proceed with the application. Normally, you can do this online. You can begin the application process by providing the required basic information.

Expect a Phone Interview

Once you’ve submitted your application, you might get scheduled for a phone interview afterward. During the interview, you will be asked about some more information about yourself, including your medical history, income, lifestyle, and other sensitive information.

Undergo a Medical Exam

Part of determining your medical condition is through an assessment of the result of your medical exam. This is a normal requirement, especially if you are a type 2 diabetic. During this process, a nurse or a medical practitioner who represents the insurer will take your measurements, vital signs, and will even request liquid samples, including blood and urine. Take note that the medical exam is scheduled. You don’t need to go to a clinic or a medical facility. You just need to inform where you want to be examined and someone will visit you on the agreed date and time.

Wait for the Underwriting Process to Get Finished

When you’re done with everything required on your end, the underwriting process begins. The underwriters from the insurance company will assess your application by looking at all the details about you, evaluating the results of your medical exam, and checking your medical history, driving record, prescription record, and other relevant information. If they find it necessary, someone might contact you again to extend a request for additional documents or information.

Get a Decision

After a thorough underwriting process, the insurer will give you a decision as soon as possible. This may be an approval or rejection of your application based on the merits of your particular case.

If you received an approval and get qualified for a policy, you will be presented with some paperwork which you need to review and sign.

Afterward, you can set up a payment. Your coverage is automatically in effect as soon as you paid your first premium.

How We Can Help You

Getting a life insurance with the best and most affordable rate wouldn’t be easy, but it wouldn’t be too difficult either if you’ll work with an insurance broker like us.

By availing of our services, we can help you get the best life insurance deal. Despite your medical condition, we are certain that we can help you qualify for a policy.

With a large network of insurance agents and a healthy connection with many of the best insurance carriers in the country, we are capable of helping you shop around, look for companies that offer an affordable rate for type 2 diabetics, and get a “quick quote” for you so you can choose the best policy offer.

Keep in mind that we don’t have any bias towards any of the carriers that we represent. When you get our services, we’ll be working solely for you.

If you need a life insurance quote, we can help you get one immediately and it’s obligation-free. All you need to do is to call us.