Can I find affordable life insurance for juvenile diabetes?
Juvenile diabetes is typically referred to as type 1 diabetes. This type of diabetes usually develops before age 30. From a life insurance underwriting standpoint juvenile diabetes is classified as a special risk.
Coverage for juvenile diabetes is available for most prospects. But, it is important that someone looking for coverage use an insurance carrier and an insurance agent who specializes in this particular type of risk.
Not all insurance companies welcome coverage on juvenile diabetics. You see each life insurance company has different options on rates and underwriting. A good agent will make it their job to find you the company that matches your particular situation the best.
What exactly is diabetes?
Diabetes Mellitus is a chronic disease occurring when the pancreas does not produce enough insulin. The body’s ability to utilize carbohydrates and break down fats is reduced. Sugars build up in the blood and urine, leading to complications affecting the heart, brain, legs, eyes, kidneys, and nerves.
Uncontrolled diabetes can result in angina, heart failure, stroke, leg cramps on walking, peripheral vascular disease, poor vision, renal failure and damage to the nerves (neuropathy).
The diagnosis of diabetes is made when an individual has high blood sugar levels in the blood, increased thirst, urination, hunger, frequent infections, or signs of any of the complications associated with diabetes.
To confirm a diagnosis, physicians will measure the level of a protein in the blood, hemoglobin A1C.
Diabetes is typically classified as one of 3 types:
- Juvenile or Type 1 diabetes
- Non-Insulin dependent or Type 2 adult onset diabetes
- Gestational diabetes
Underwriting juvenile diabetes
If you are not familiar, underwriting is the evaluation of risk. An underwriter will look at the information of someone’s health history gathered from medical records, lab reports, etc. to determine what the mortality risk is for a particular prospect. At that time they will assign a percentage of risk to that particular applicant.
As mentioned above, each underwriting life insurance company looks at risk differently. There are a limited number of carriers who specialize in underwriting juvenile diabetes.
Let’s look at some of the information these special risk underwriters take into consideration:
The earlier one is diagnosed, the higher the mortality risk because there is no predictably for control of condition with one’s body growing and changing constantly until one becomes an adult.
So, therefore carriers look at age of diagnosis, length of time prospect has had condition, treatment for diabetes, and if the prospect has the condition well controlled which is shown through lab work and compliance in regular check ups with a physician.
What carriers specialize in juvenile diabetes
Out of the 1,000 or more life insurance companies doing business in the United States only a handful actually specialize in underwriting those with juvenile diabetes.
Over our 30 years in the special risk life insurance business below are the carriers we have found to be the best in no particular order:
- Prudential
- American General
- United Of Omaha
- Banner Life
- Lincoln National Life
- Pacific Life
- North American Life
- Principal National Life
- Transamerica Life
- Protective Life
- John Hancock
- Nassau Re
All of these carriers are terrific life insurance companies. And depending on the individual circumstance one of these companies is who I would recommend.
How to find out what your rating would be
When underwriting an individual with a history of juvenile diabetes it is important to provide your agent with as many details as possible up front regarding your medical history.
The more medical information you can provide the easier and quicker it will be for your agent to comparison shop for the company that will offer the lowest rates.
An agent that is experienced in this type of risk will know what questions to ask you and will know how to present your case to the different carriers in the best light. Quite frankly, most agents don’t have a clue on how to negotiate offers for coverage on special risks life insurance cases.
Oftentimes, they will suggest to the prospect to just apply to different carriers and see who comes back with the best rate. Not only does this waste your time filling out applications and doing multiple exams and lab tests for different carriers, but it could actually hurt your chances of getting the most affordable coverage.
Here’s why?
Life insurance companies are in the business to make a profit and to make a fair offer for coverage. They are not in the business to underwrite, order and pay for medical records, exams, etc. only to have the prospect go somewhere else and buy the coverage.
You see it costs money for the insurance carrier to underwrite an application. If they check the medical information bureau(MIB) and see that you have applied to multiple carriers that may decide to just decline your request for underwriting.
The medical information bureau is kind of a clearinghouse for insurance companies. They can see if you have submitted applications elsewhere and if you have been declined for coverage.
Why would they want to spend time paying for underwriting your application when they see you have already submitted applications to half dozen other carriers? They wouldn’t. So, even though that particular carrier may have been the one that would have offered you the best rates, you would never know because they didn’t want to play the game of underwriting roulette.
NUMBER ONE RULE- DO NOT USE AN AGENT THAT IS INEXPERIENCED IN THE SPECIAL RISK MARKET… IT WILL NOT ONLY COST YOU TIME AND MONEY, BUT IT MAY COST YOU A CHANCE TO FIND A GOOD POLICY!!!
Conclusion-
If you are looking for life insurance protection for juvenile diabetes talk to an expert. If you would like a free consultation on what options are available contact the Mike Raines, the owner of the agency direct at 678-207-8160 or mike@specialriskterm.com
