3 min read
How your diabetes is managed – and any complications that may have developed – can play a big role in how insurers respond to your application.
Why is diabetes a factor in life insurance?
Insurers assess the likelihood of a claim being made on a life insurance policy. Diabetes increases the long-term risk of other serious health issues, such as cardiovascular disease, kidney problems and nerve damage. That’s why insurers can see it as a higher risk condition, particularly if it’s not well-controlled.
This applies to both type 1 and type 2 diabetes, although they may be considered differently during the underwriting process. Other factors may also influence the decision, such as your age at diagnosis, body mass index (BMI), blood pressure and cholesterol.
How do insurers assess diabetes-related risk?
When you disclose a diagnosis of diabetes on your life insurance application, the insurer will usually ask for more details. This can include:
Whether you have type 1 or type 2 diabetes.
When you were diagnosed.
What medication or insulin you use.
Your most recent HbA1c (blood glucose) reading.
Whether you’ve experienced complications (e.g. neuropathy, retinopathy, kidney damage).
Your height and weight (BMI).
Whether you smoke or have high blood pressure or cholesterol.
You may also be asked whether you’ve been hospitalised, have had time off work due to your diabetes, or are under the care of a specialist. Insurers may request a GP report or a medical examination to confirm this information.
How do insurers respond to an applicant with diabetes?
When assessing an application for life cover, each insurer has their own underwriting approach, but some common outcomes include:
Well-controlled diabetes, with stable HbA1c levels and no complications, may lead to only a small increase in premium.
Recent diagnosis or mild complications may result in a moderate increase in your premiums.
Poorly controlled diabetes, or cases involving complications such as kidney disease or heart problems, may lead to significantly higher premiums or policy exclusions.
In some situations, the insurer may postpone a decision, for example, if a recent diagnosis hasn’t yet stabilised.
The type of diabetes can also influence the result. Type 2 diabetes that is diet-controlled may be viewed more favourably than type 1 diabetes that requires insulin, although this depends heavily on individual circumstances.
What exclusions might apply?
In some cases, an insurer might offer cover that excludes death caused by diabetes or its complications. However, this is less common in standard life insurance policies and more likely to be seen in critical illness cover or income protection.
Always read your policy documents carefully, and ask your insurer, broker or adviser to explain anything you’re unsure about.
The importance of full disclosure
Even if your diabetes is well managed and doesn’t cause day-to-day problems, it’s essential to declare it on your application. This includes providing accurate details about diagnosis, treatment and your latest test results if asked.
If the insurer later discovers that information was withheld or understated, they may refuse to pay out on a claim. Full disclosure gives peace of mind that your loved ones will be protected if the worst happens.