In the last 20 years, the number of adults diagnosed with diabetes has more than doubled as the American population has aged and become more overweight or obese.
Getting life insurance with a chronic condition like diabetes can present some challenges. Final expense is affordable life insurance for diabetics. People looking for coverage should know that the best policy depends on the size and type of insurance they are looking for.
Funeral Insurance For Diabetics
Funeral insurance is a type of permanent life insurance with no medical exam. This coverage was built specifically for seniors and is also referred to as final expense and burial insurance.
Funeral insurance coverage might be best for you if you:
- are unable to qualify for a policy that requires a medical exam
- do not want to get a medical exam
- want a permanent policy
- want a policy to cover funeral expenses
- have no money set aside for your final expenses
- want your monthly insurance premiums to be locked in for life
- want your coverage amount to remain the same
Final Expense Coverage Basics
Final expense falls under simplified issue whole life insurance. Three features make burial coverage stand out.
Low-Cost: Burial policies range from $1,000 – $40,000 in coverage. This amount is lower than other types of life insurance, making it more affordable. Larger life insurance policies cost more and are meant to replace an income rather than cover final expenses.
No Medical Exam: Simplified issue insurance will never have a required health exam. The applicant will be asked a few simple questions about their health, which will determine eligibility.
No Denial: Funeral plans are available to everyone. Some final expense insurance policies come with immediate coverage, while others have a waiting period. Someone with controlled diabetes will be able to get coverage with no waiting period. Others that have had diabetic complications could be subject to a waiting period. Either way, no one who is of sound mind is denied life coverage.
All whole life insurance policies come with a few standard benefits that are important to understand.
Whole Life Insurance Features
Coverage Lock: The amount of coverage, also known as the death benefit, will remain the same and never expires. Policyholders will never have to worry about the amount of money their beneficiary will receive because it is locked in.
Price Lock: The insurance premium cost will never fluctuate. The price you pay for your first premium will be the same as your last.
Cash Value: With each premium payment made, a portion goes into the “cash-value account,” which grows over time. If needed, the policyholder can access this amount in the form of a loan.
How Much Does Life Insurance for Diabetics Cost?
The price of diabetic burial life insurance depends on the company and if the applicant has other health concerns. Quotes will also fluctuate by age, gender, and the desired policy amount.
The insurance premium quotes in the charts below show the high and low end of what a diabetic senior can expect to pay for final expense coverage.
Monthly Premium Range
|45||$23 – $34||$32 – $49||$42 – $64|
|50||$24 – $39||$35 – $57||$45 – $80|
|55||$28 – $47||$40 – $69||$52 – $103|
|60||$33 – $54||$48 – $80||$63 – $119|
|65||$41 – $66||$60 – $99||$79 – $146|
|70||$53 – $80||$78 – $120||$103 – $177|
|75||$72 – $116||$107 – $173||$142 – $254|
|80||$98 – $190||$146 – $283||$194 – $411|
|85||$136 – $220||$202 – $328||$269 – $436|
Monthly Premium Range
|45||$27 – $47||$39 – $68||$51 – $89|
|50||$31 – $56||$44 – $83||$58 – $110|
|55||$36 – $61||$52 – $91||$69 – $135|
|60||$44 – $68||$64 – $101||$84 – $149|
|65||$56 – $91||$83 – $135||$110 – $199|
|70||$75 – $106||$110 – $158||$146 – $233|
|75||$100 – $150||$148 – $223||$197 – $328|
|80||$140 – $232||$208 – $346||$276 – $461|
|85||$193 – $312||$288 – $467||$382 – $621|
Underwriting & Diabetic Complications
According to the CDC, diabetes is the 7th leading cause of death in the United States and could be underreported.
Given that diabetes can lead to several other complications, it puts those with this diagnosis at a higher risk of premature death. This is the reason that insurance companies look at diabetes as high risk, often with higher rates.
Final expense companies will still insure diabetic seniors. Coverage may even cost the same as a completely healthy person.
Most Companies Ask:
The application for coverage could ask for the following information.
- Your height & weight
- Age at diagnosis
- How you treat & manage (Prescriptions, Insulin, etc.)
- Type 1 or 2
- Insulin shock
- Diabetic coma
- Diabetic complications including cardiovascular disease, nerve damage (diabetic neuropathy), kidney damage (nephropathy), eye damage (retinopathy)
- Amputation due to diabetic complications
- Kidney failure
- Alzheimer’s Disease
Most carriers will check your prescription history & Medical Information Bureau (MIB) to ensure everything lines up with your application answers.
If you have had any of the above complications because of diabetes, this will usually put you in an even higher risk category when being considered for coverage.
A few insurance companies will not insure you with these diabetic complications, while others will but at a higher rate. Depending on the complication, you may have a 2-year waiting period.
Why Does Age at Diabetes Diagnosis Matter?
The earlier in life that you were diagnosed, the longer you will have to battle diabetes. This is important because the longer your body is under the stress of this condition, the more time you have to develop related complications.
For this reason, carriers usually look more favorably onto people who have been diagnosed later in life.
Companies Will Not Ask:
- A1C levels
- Blood glucose tolerance test results
- Foot damage
- Skin conditions
- Hearing impairment
No medical exam means that they will never test your blood sugar levels to determine coverage.
Level: For seniors with controlled diabetes, this plan is readily available from funeral insurance companies. Level plans offer low-cost coverage with no waiting period.
Graded: Partial coverage is available immediately, with full coverage available after 2 years. Graded plans are slightly more expensive but have more lenient health standards to qualify.
Modified: Also known as a “return of premium” plan, modified has a 2-year waiting period before the full death benefit is available. If the insured passes within these two years, the beneficiary gets a return of paid premiums +10% interest.
Guaranteed Acceptance: These plans will be best for diabetic seniors who have had severe diabetic complications. Guaranteed issue plans accept everyone who is in their right mind that can enter into a contractual agreement. With a 2-year waiting period and a similar payout structure as a modified plan, this is a great alternative for those who cannot qualify for a level or graded option.
Funeral Insurance With Diabetes Common Questions
Can I Get Life Insurance with Type 2 Diabetes?
People with type 2 diabetes can get final expense life insurance with no waiting period. If the applicant has encountered complications from their diabetes diagnosis, they could be subject to a waiting period and higher prices. Each company has slightly different qualifying criteria.
Which Final Expense Insurance is Best for Diabetics?
Many insurance companies will accept people with diabetes. Since each sets its own standards, acceptance with certain companies is more lenient than others. Age of diagnosis, how you manage your diabetes, and any associated complications play a role in which company is best for people with diabetes.
Is it Hard to Get Life Insurance with Diabetes?
Some life insurance companies will make diabetics wait a couple of years for coverage to begin, while others will provide immediate coverage. It is not hard to get life insurance with diabetes, but you will want to make sure you are working with the right company.
Working with an independent agency representing multiple providers, like Willamette Life, will be the ultimate way to get fast approval at the lowest rate.
How To Find Best Burial Insurance For Diabetics
All burial insurance is obtained without a medical exam. No company within the final expense insurance market will offer a discount or a better rate for taking an exam.
Every life insurance company has a different tolerance for covering someone with diabetes or any other health condition.
It is critical to understand that if you have any health condition in addition to being a diabetic, that condition is just as important when applying and qualifying for funeral insurance.
When it comes to obtaining coverage with a health complication, especially diabetes, it is vital to work with an agency with access to multiple top burial insurance carriers since they each have vastly different underwriting criteria.
Captive vs. Independent Agents
The agency you work with should be well versed in accommodating people with a wide range of health problems and have the appropriate insurance providers in their toolbox.
Captive Agents: This type of agent has access to plans from one company only. This can be problematic for people with health concerns, such as diabetes.
These final expense insurance policies can be either very health restrictive or highly-priced guaranteed acceptance plans. The point is, this will most likely not present you with the best option.
Independent Agents: Independent agents can shop around on your behalf by having access to as many companies as they choose. A good independent agency will try to get to know you and your personal health history before beginning an application to place you with a provider.
Your agent may start by asking broad questions about your health and then specific follow-up questions based on your answers and their industry knowledge. They are only asking these questions to help you find the best plan possible.
How Willamette Life Can Help
As an independent agency that specializes in high-risk burial insurance, Willamette Life will do everything in our power to get you immediate coverage.
Willamette Life represents several top-tier insurance companies that accept a range of diabetic complications and various other health concerns. We will make sure you do not get denied life insurance because of diabetes.
a. Funeral insurance for diabetics is available at an affordable rate with no waiting period.
b. Complications because of diabetes may reduce your chance of immediate coverage, but you still have many options.
c. Make sure you select an independent agency to work with that represents multiple carriers.
Call Willamette Life at 844-576-0019
Stacie manages the content for Willamette Life by keeping it up to date and accurate. By taking the questions frequently asked by clients she has been able to assist in developing a series of blogs that will hopefully be able to help more people than just those we are able to speak with.
We would be happy to answer your specific questions if there is anything we haven’t covered yet.