If you are like most people, you are always looking for a way to save money or get the ‘best’ deal on something. When dealing with Life Insurance, most people are usually looking for ways to obtain the most affordable policy. But what if you are one of the nearly 422 million people in the world, who are living with a form of Diabetes?
Life insurance for diabetics will generally be more expensive for the diabetes community to begin with. The good news is, there are ways to lower your life insurance premiums. In this article we’ll cover a few ways people with diabetes can obtain better life insurance rates.
Maintain your weight
One of the simplest ways to help save money on an insurance policy, is to maintain a healthy weight. Life insurance companies will have what’s referred to as a Height/Weight guideline. If your weight begins to fall outside of normal guidelines, companies will begin charging 25% to 50% higher premiums. These extra ratings are referred to as ‘table ratings. The higher the extra rating your policy is given, your premiums will be. If you are unsure were your weight falls into underwriting guidelines, simply speak with an agent, who could guide you in the right direction.
Often times, a person would be ‘slotted’ into a better life insurance rating, if they were just 5 to 10 pounds lighter. Also, studies have shown the better a person’s weight, the better the control of their diabetes. These go hand and hand! Life insurance companies want to see the positives in your health profile. Showing them that you maintain a healthy weight, will show the underwriters that you are a favorable risk to them. This will help you and your bank account, as you’ll be rewarded with lower premiums!
Have an exercise program
Exercising is important piece of the puzzle, to maintaining a healthy life style. Generally, by exercising regularly, you’ll maintain a better weight, and most likely watch your diet closely. All of this also helps you manage your diabetes indirectly. Studies have shown those who exercise, tend to have more favorable A1C readings compared to people with diabetes who do not exercise.
When applying for life insurance coverage as a diabetic, certain companies will offer more favorable premiums to those who exercise regularly. When an underwriter reviews your profile, and sees that you are active, they’ll tend to offer a more favorable offer. These discounts could reach as high as 20%. That may not seem like a lot of savings. However, over the life time of a policy, this could equate to thousands of dollars in savings.
Good news is that the term ‘exercise’ includes all types of activities. If you don’t like going to gyms, or running, don’t worry! Activities such as walking, playing sports, or even doing yoga, would qualify for discounts. Life insurance underwriters love for their diabetic clientele to be active.
Avoid using tobacco products
If you use tobacco products, in addition to having a form of diabetes, you’re going to get hit with higher life insurance premiums. The first thing an underwriter will do is rate your policy as a tobacco user. This adds 20% to 30% higher premiums right off the bat. Life insurance companies know that people who smoke, and have diabetes, have a greater chance to develop diabetes related complications.
Then, life insurance underwriters are going to add an extra table rating to your policy for using tobacco products along with having diabetes. Each table rating is 20% to 25% of additional life insurance rates.
Tobacco and diabetes are a bad combination. If you’re thinking about life insurance, you may want to consider refraining from using these types of products. If you smoke an occasional cigar, or pipe, then don’t worry. Many life insurance companies will allow you to use these products periodically, without labeling you as a tobacco user.
Consider a no medical exam policy
If your diabetes isn’t under the best of control, one option is to possibly consider a policy, that doesn’t require a medical exam. Traditional life insurance generally requires you to complete a blood and urine test. Those lab results, along with a review of your most recent diabetes records, would determine what rates you’d qualify for.
Unfortunately, not everyone who has diabetes, always has the best of control of their condition. A1C levels tend to fluctuate over time. If you’re A1C levels are trading higher, applying for a no medical exam life insurance policy could be your best bet.
No medical exam life insurance policies for diabetics do not require all of the additional testing. Instead, insurance companies will ask basic health, and diabetes questions, to make their underwriting decisions. If a person doesn’t have a favorable A1C, a no medical exam policy may save them 10% to 15% on their premiums. Or in some cases, policies like these are the only ones that you may qualify for. Don’t feel like you have to make this decision by yourself. Knowledgeable agents can help you make the decision that’s best for you and your family.
Bottom line is this. People with Diabetes have lots of options when it comes to life insurance. Don’t believe the old myths from people who think otherwise. Life insurance is one of the most important financial decisions a person can make, for their family. Having Diabetes no longer has to hold you back from acquiring coverage.
