Understanding Life Insurance Underwriting for Diabetics

Over the past decade, over 40 million Americans have been diagnosed with diabetes, as reported by the U.S. Centers for Disease Control and Prevention. This underscores the importance of understanding how life insurance underwriters evaluate diabetes when determining coverage and premium rates.

Historically, obtaining life insurance was challenging for individuals with diabetes. However, recent medical advancements have enabled many to secure policies at "standard" rates or better. Improved health outcomes due to these advancements have prompted insurers to modify their underwriting criteria. Lauren Ballantine, vice president of underwriting at Valmark Financial Group, highlights how these developments have significantly reduced mortality rates for diabetics.

The life insurance industry's approach to insuring individuals with diabetes has evolved. Ballantine notes more aggressive underwriting guidelines, reflecting a more favorable view of well-managed diabetes. Despite these changes, effective management of the condition remains crucial in determining rates and eligibility.

Byron Udell, an independent life insurance broker, asserts that insurers are now more willing to offer "standard" or similar rates to individuals with stable glucose levels and no severe complications. To secure the best rates, applicants should inform their insurance agent about their diabetes management strategy.

The underwriting process considers several factors, including diabetes type, A1C levels, age at onset, and overall health. These elements collectively influence eligibility and pricing. Consistent A1C readings and diabetes type, such as Type 1 or Type 2, impact the rates offered by insurers.

Insurers also assess treatment methods. Oral medication use, as opposed to insulin, and a comprehensive health management approach can bolster an application. Dr. Edgar Fernandez, chief medical officer for the Banner Life family of companies, emphasizes the importance of consistent medication adherence and lifestyle factors in underwriting.

Certain insurers are proactive in addressing the needs of diabetic applicants. Companies like John Hancock, for example, target this demographic, seeing it as a market with active health management practices. This is advantageous for diabetics who maintain regular medical check-ups and testing. While individual policies remain challenging for some, group life insurance through employment can offer a viable alternative.