Affordable Life Insurance For People With Diabetes In Canada

Affordable Life Insurance For People With Diabetes In Canada

With diabetes often viewed as high-risk by insurance companies, finding affordable life insurance for people with diabetes can seem challenging. However, there are several ways Canadians with diabetes can secure cost-effective coverage.

This detailed guide examines how diabetes impacts life insurance in Canada, cost factors, policy options, tips for savings, real-world case studies, companies to consider and FAQs to enable you to protect your loved ones.

How Diabetes Can Affect Life Insurance in Canada

Over 3 million Canadians have diabetes (about 8.9% of the population) , with rates continuing to rise. The table below outlines statistics on diabetes prevalence in Canada:

Type of DiabetesEstimated Cases in Canada
Type 1Approximately 9%
Type 2Approximately 90%
Gestationalless than 1%
Source: https://www.canada.ca/en/public-health/services/publications/diseases-conditions/framework-diabetes-canada-infographic.html

According to Diabetes Canada, people with diabetes are more likely to have heart disease, more likely to require a limb amputation, and up to 80% more likely to die following a heart attack compared to the general population. Other diabetes-related complications like blindness, kidney disease and neuropathy also have higher incidence rates. From an insurance perspective, if someone is more likely to develop severe health issues and pass away earlier, they are seen as riskier to insure.

This leads to higher premiums for people with diabetes applying for life insurance, though the exact increase varies significantly based on the applicant’s health history and insurer guidelines.

However, having diabetes does not mean coverage is expensive or even necessarily unattainable. Proper management of your diabetes can significantly reduce risks. And no-medical-exam policies make getting approved simple and affordable.

Key Factors That Determine Your Insurance Eligibility & Rates

When applying for life insurance with diabetes, there are several important factors insurance companies evaluate to determine your policy options, eligibility and premiums:

Type of Diabetes

  • Type 1 diabetes is seen as the highest-risk form of diabetes by insurers because it is caused by the autoimmune destruction of insulin-producing cells in the pancreas. This results in a lifelong dependence on injected insulin treatment.
  • Type 2 diabetes is perceived as more manageable with oral medications, diet, and lifestyle changes. Applicants will have an easier time obtaining standard rates.
  • Gestational diabetes occurring during pregnancy generally does not impact rates once resolved post-pregnancy.

Blood Sugar Control & A1C Levels

  • A1C testing provides the average blood sugar over the past 2-3 months, indicating how well diabetes is controlled through treatment.
  • Ideal A1C levels below 7% demonstrate lower risk. Elevated levels over 8% represent poorer control and higher complications risk.

Date of Diagnosis & Duration

  • The earlier the age that diabetes is diagnosed, especially if in childhood or adolescence, the higher the premiums will be.
  • The longer an applicant has lived with diabetes, the greater the impact on internal organs over time and the chance of developing complications. This raises the mortality risk assessment.

Treatment Factors

  • For Type 1 diabetes, the insurer evaluates the insulin therapy regimen, including types of insulin, daily dosage, use of pumps/pens and frequency of administration.
  • For Type 2 diabetes, the use of oral medications, insulin if required, and adherence to lifestyle changes like diet and exercise are assessed.
  • Evidence of a diligent treatment routine improves the risk profile.

Presence of Complications

  • Diabetes complications like retinopathy, neuropathy, kidney disease, and cardiovascular disease significantly increase risks and premium costs. Having no complications improves eligibility.

Other Health Considerations

  • Life insurance underwriting also accounts for other factors like smoking, obesity, hypertension, and high cholesterol, which compound the risks associated with diabetes and influence premiums.

So, a non-smoker with newly diagnosed type 2 diabetes and A1C of 6.5% taking metformin will be viewed much more favourably than someone with long-standing type 1 diabetes, A1C over 9% and kidney issues.

As a result, applicants with diabetes will almost certainly pay higher premiums for life insurance coverage. They may also find it more difficult to qualify for certain types of policies. Understanding how insurers assess diabetes cases is key to getting affordable coverage.

No Medical Exam & Fully Underwritten Life Insurance For People With Diabetes
No Medical Exam & Fully Underwritten Life Insurance For People With Diabetes

No Medical Exam Life Insurance For People With Diabetes

One of the most affordable routes for getting life insurance for people with diabetes is through no medical exam policies. This avoids lab testing and disclosing your full medical history.

There are two main types of no-medical life insurance suitable for diabetics:

Simplified Issue Life Insurance

  • Answer limited health questions
  • Provide basic details on diabetes diagnosis, treatment, etc.
  • Offers more coverage at lower rates than Guaranteed Issue

Guaranteed Issue Life Insurance

  • No health questions are required for Guaranteed issue life insurance
  • Guaranteed approval regardless of health
  • Maximum $25,000 coverage, often with higher premiums

Fully Underwritten Life Insurance For People With Diabetes

If you have well-managed diabetes and are otherwise healthy, traditional fully underwritten term life insurance can also be cost-effective.

With fully underwritten coverage, the insurance company will thoroughly assess your health, including:

  • Comprehensive health and prescription history
  • Paramedical exam with blood and urine testing
  • Potentially requesting your medical records
  • Checking for the presence of complications

This allows insurers to analyze and price your specific risks accurately. The advantage is that if your health is good, you may qualify for significantly lower premiums than with no medical exam options.

For instance, Margaret, a 52-year-old with type 2 diabetes, pays $90/month for a $500,000 fully underwritten 20-year term life policy, Comparable to no medical exam policies, which would be $200/month.

In summary, fully underwritten life insurance can provide more affordable premiums for diabetics who are proactively managing their health, while no medical exam policies offer guaranteed approval regardless of health history but can be much more expensive.

Read more: Life Insurance Medical Exam

Group Life Insurance for Diabetics

Another way diabetics can obtain affordable life insurance is through group policies from an employer.

With group life insurance:

  • No health questions or medical exam required
  • Premiums are lower due to pooled risk
  • Employers often cover all or part of the premiums

The main disadvantages are that the benefits are limited to 1-2x salary and that you will lose coverage if you leave the job. However, group life insurance is an easy and budget-friendly option for diabetic employees to get basic coverage.

Tips to Find Affordable Life Insurance For People With Diabetes

Here are helpful tips for diabetics in Canada seeking the most affordable life insurance policy:

  • Compare quotes from various insurers and policy types to find the lowest rates.
  • Maintain excellent blood sugar control with diet, exercise, and medication adherence.
  • Improve lifestyle habits like diet, exercise and smoking cessation for 3-6+ months before applying.
  • Prevent complications through healthy lifestyle choices.
  • Apply when healthiest – avoid right after diagnosis or complications.
  • Explore no medical exam simplified issue or guaranteed issue policies.
  • Consider group life insurance from the employer.

Shopping around and comparing quotes is key, as life insurance companies price policies differently. No medical exam policies provide an easier path to approval, while good health can lead to lower fully underwritten premiums.

Real-World Case Studies of Diabetics Finding Affordable Coverage

Here are examples of how real Canadians with diabetes secured affordable life insurance:

Simplified Issue for Uncontrolled Type 2 Diabetes

  • Maria, 57 years old, was diagnosed with type 2 diabetes 13 years ago
  • A1C fluctuates wildly, ranging from 6% to 12% recently
  • Declined for fully underwritten insurance due to poor control
  • Approved for $150,000, 20-year simplified issue term policy at $115/month

Group Life Insurance from the Employer

  • Sam, 35 years old, has a long history of type 1 diabetes with A1C around 7.5%
  • Assumed uninsurable for the individual underwritten policy
  • Leveraged employer’s group life insurance benefits for $120,000 in coverage
  • Just $18/month premium through payroll deductions

Well-Managed Diabetes Leading to Fully Underwritten Approval

  • Linda, 48 years old, was diagnosed with type 2 diabetes three years prior
  • Lost nearly 40 lbs and reduced A1C to 6.2% via diet and exercise
  • Applied and approved for a $500,000 fully underwritten term policy at $90/month
  • Proactive health management made underwritten insurance affordable

Leading Life Insurance Companies for Diabetics in Canada

When shopping for life insurance with diabetes, compare top providers for your best rates:

Canada Life: Offers affordable rates for controlled diabetes with ASSURE Term Life Insurance.

Sun Life: Features diabetes-specific underwriting on certain policies.

RBC Insurance: Competitive pricing for diabetics with its Term Life Insurance plan.

Manulife: Accelerated underwriting offers select clients policy approval in minutes.

BMO Insurance: Partners with various reinsurers to provide specialized coverage.

Equitable Life: Flexible, no medical and fully underwritten options.

Industrial Alliance: iVariety Term specifically built for health issues like diabetes.

Foresters Financial: Comprehensive plans with unique member benefits and support.

FAQs About Getting Life Insurance For People With Diabetes

Can I get life insurance if I have diabetes?

Several life insurance options are available to diabetics, including Simplified Issue, Guaranteed Issue and fully underwritten term policies. Affordable coverage is very attainable.

How much more will it cost with diabetes?

Fully underwritten premiums are typically higher for diabetics but could be a minimal increase with well-controlled conditions. Simplified issue policies cost the same regardless of diabetes.

What can reduce premiums with diabetes?

Maintaining healthy A1C levels below 7%, avoiding complications, managing weight, not smoking, and applying when health is stabilized can lead to the most affordable rates.

What if I already have coverage and then develop diabetes?

If you already have life insurance when later diagnosed with diabetes or another health issue, your premium will not change, and coverage cannot be cancelled by the insurer.

Can I still get life insurance if I have diabetes and high blood pressure?

Yes, you can still get life insurance with both diabetes and hypertension. No medical exam policies make securing affordable coverage simpler for those with multiple conditions.

Finding the Right Life Insurance with Diabetes

Despite being high-risk, affordable life insurance is very attainable for Canadians with diabetes. No medical exam simplified issue policies provide an easier path to approval without lab tests or medical records. Fully underwritten policies can also offer cost-effective rates for those maintaining good health.

Comparing quotes from leading life insurance companies gives you the best chance at securing budget-friendly coverage. With proper diabetes management and help from an expert broker, you can safeguard your family and finances.

Let Us Find You Affordable Coverage

Here at Insurance Direct Canada , we’ve helped thousands of Canadians with all health situations get approved for the life insurance protection they need.

To explore your affordable life insurance options, get a free quote or call us at 1-866-747-7615. We’ll simplify this process and find you optimal coverage.

Sources:
  1. policyadvisor.com:Life insurance for diabetics- https://www.policyadvisor.com/life-insurance/life-insurance-diabetes/
  2. cpp.ca:Reasons Why Diabetes Can Affect Life Insurance Premiums- https://www.cpp.ca/blog/5-reasons-why-diabetes-can-affect-life-insurance-premiums/
  3. nerdwallet.com:Life Insurance for Diabetics- https://www.nerdwallet.com/article/insurance/life-insurance-for-diabetics
  4. protectyourwealth.ca: Applying for Life Insurance With Diabetes in Canada – https://protectyourwealth.ca/applying-for-life-insurance-with-diabetes-in-canada/
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All product names, trademarks, and trade names are the property of their respective owners. The Insurance Council (BC, AB, SK, MB), Financial Services Commission (ON), Chambre de la Sécurité Financière (QC), The Superintendent of Insurance (NB, NL, PE, NS) are the provincial and federal authorities that regulate, supervise and enforce standards for life insurance professionals. IDC member websites include: Life Insurance Newspaper, Employee Benefits Newspaper

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