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Life insurance for diabetics
If you’ve been diagnosed with diabetes, you can usually still take out a life insurance policy, but you may have a restriction or exclusion added to your policy.
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It is possible to get cover for type 1 or type 2 diabetes in Australia when applying for a fully underwritten life insurance policy. However, the increased risks associated with diabetes mean that cover may come with a premium loading.
Here's how to get life insurance as a diabetic, including limitations and factors involved in the application process.
Compare life insurance providers for diabetes
Finder Score - Life Insurance
Life Insurance is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other. Our experts analysed over 20 products and gave each one a score between 1 and 10.
But a higher score doesn't always mean a product is better for you. Your situation is unique, so your policy choice will be too. Don't think of Finder Score as the final word, but as a good place to start your life insurance comparison.
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What do insurers look at when assessing people with diabetes?
An insurance underwriter will assess how controlled your diabetes is and also the type of diabetes, how it is treated, age of diagnosis and any medical complications that could impact your level of risk.
If you have type 1 diabetes then you may pose an increased risk to life insurers, as type 1 diabetes can be more serious over a long term and more difficult to treat than type 2 diabetes.
The age that the applicant was diagnosed with diabetes can also be a contributing factor to the premium payable. Someone that was diagnosed at a younger age is more likely to suffer complications later in life. Type 1 diabetes is more prevalent among young people.
An underwriter will take into account if there is a presence of excessive alcohol intake.
If a member of the applicant's family has died before the age of 60 as a result of cardiovascular-renal disease, an additional loading will be applied.
The control of the applicant's glucose levels will also be assessed. If it is not satisfactory the diabetic rating may be increased.
Diabetes can cause many medical complications including blindness, kidney dysfunction and peripheral vascular problems. An underwriter will assess additional conditions suffered by the applicant and will require evidence of this from a treating doctor.
As a longtime diabetic Jason applied for life insurance anyway. Some of the questions Jason had to undergo included: - What type of diabetes were you diagnosed with? Is it type 1 or 2, gestational diabetes, diabetes insipidus, glucose intolerance or insulin resistance? - When was the diagnosis made? - How is the condition treated? Is it treated with diet, insulin injections, oral medications or other? What is the medication and dosage amount, if applicable? - Have you experienced any complications including kidney or nerve problems, high blood pressure, vision impairment or reduced blood circulation as a result of diabetes? Have you ever experienced a diabetic or insulin coma or required hospitalisation because of the condition? - When was the condition last checked and what were the results of the tests? - What were the results of your most recent glycosylated haemoglobin test? Provide the contact information for your doctor or doctors.
* This is a fictional, but realistic, example.
What information will your insurer require?
Medical attendants report will be required for both type 1 and type 2 diabetes
Diabetic questionnaire required from applicant to determine if they understand the condition and have been cooperative with a certified medical practitioner
Questionnaire will usually be required from the applicant's medical attendant
The applicant may also be required to undertake an ECG and chest X-ray if the sum insured is substantial
Diabetes in Australia
Diabetes in Australia is on the rise and affects roughly 1.7 million Australians. Diabetes costs Australians an estimated $14.6 billion per year.
According to Diabetes Australia, 280 Australians develop diabetes every day, which is 1 person every 5 minutes. And the trend doesn't show any signs of slowing. New cases of type 2 diabetes steadily increased between the year 2000 and 2009.
In 2013, there were 2,323 new cases of type 1 diabetes in Australia, equating to 11 cases per 100,000 population.
The incidence rate for type 1 diabetes:
Is higher in males than females (12 compared with 9 per 100,000 population)
More than half (52%) of all new cases were for people under 18 years of age
Peaked at age 10–14 years (33 per 100,000 population)
Trauma insurance and diabetes
Most comprehensive trauma cover policies will offer coverage for applicants who suffer from diabetes. As with life cover, the insurance provider will assess each applicant against their criteria to determine the level of risk they carry. Premiums will depend on the age the person was diagnosed and the level of control of the condition.
Trauma cover can provide great financial support if a policyholder is diagnosed with diabetes and it meets the conditions as defined by the provider. Trauma cover will pay out as a lump sum benefit that can be used to help cover medical expenses, mortgage repayments and any reduction of income that may occur.
What exactly is diabetes?
Diabetes is a condition that can affect many parts of the body. It stems from the body producing an insufficient level of insulin, which allows the body to transform glucose into energy. The inability to regulate blood glucose levels can result in a dangerous overload of sugar in the person's blood stream. This means that when people with diabetes eat foods that contain glucose their bodies can't convert it into energy. Foods include:
Yoghurts and sweets
Milk
Fruit and starchy vegetables
Cereals
Breads
Legumes
Eggs
How is type 1 diabetes different to type 2 diabetes?
Type 1 diabetes is where the pancreas is unable to continue making insulin, making blood cells unable to turn glucose into energy. This in turn can lead to an accumulation of dangerous chemical substances within their blood from the burning of fat. If not treated appropriately this can lead to a condition known as ketoacidosis which can be fatal.
Type 1 diabetes accounts for roughly 10–15% of all cases of diabetes. In order to prevent ketoacidosis, people with type 1 diabetes are required to take up to 4 insulin injections every day. The condition typically occurs in people under the age of 30.
Type 2 diabetes is more common among older adults and makes up roughly 85–90% of all people with diabetes. In comparison to type 1, the pancreas is able to produce some insulin but it is an inefficient amount to enable the body to work effectively.
While type 2 diabetes is a result of genetic make-up, it is largely associated with lifestyle factors that can result in high blood pressure and obesity, usually a result of poor diet and a lack of physical activity. Luckily for this group, it can usually be managed via healthy eating and regular exercise. However, most people with this condition will still need to take tablets or insulin when required.
Speak to an insurance specialist to help you find cover
Frequently asked questions
Yes, there are many life insurance providers in Australia that will cover you if you have been diagnosed with diabetes. To make sure you're covered, it's very important to let your insurer know at the time of application and it is likely that you will have to complete a medical questionnaire or an examination.
Yes, your chosen insurer will need to know about all of your existing medical conditions at the time of application to decide if it will insure you, and use this information to work out your premium. The insurer may decide to put a restriction or exclusion on your policy, depending on how well they deem your diabetes to be under control.
Yes, having both diabetes and high blood pressure doesn't necessarily mean you'll be turned down for life insurance. Many providers will cover you but it's important to disclose all of your existing medical conditions when you apply.
Yes, type 2 diabetes is considered a pre-existing medical condition and it's important to disclose any that you have when applying for life insurance.
Critical illness insurance doesn't usually consider diabetes to be a critical illness on its own but complications that arise from diabetes may be considered. This can include cardiovascular disease, stroke and limb loss.
Not necessarily. Many life insurance providers in Australia will cover you if you have been diagnosed with diabetes provided you disclose this at the time of applying.
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To make sure you get accurate and helpful information, this guide has been edited by Moira Daniels as part of our fact-checking process.
Richard Laycock is Finder’s insights editor after spending the last five years writing and editing articles about insurance. His musings can be found across the web including on MoneyMag, Yahoo Finance and Travel Weekly. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance. See full bio
BT has grown to become one of the most respected insurance groups in Australia. Find out what is covered under the BT Life Insurance policies and receive a secure quote for cover from an insurance consultant.
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