Life Insurance Question: Diabetic and Overweight

When you apply for life insurance, there are dozens of hoops that the insurance company is going to make you jump through before they give you insurance protection. If you have diabetes or you’re overweight, then you might be concerned that you won’t be able to get approved for protection. In most cases, that couldn’t be further from the truth.

Before you apply for life insurance, it’s important that you understand all of the questions that the insurance company is going to ask. Don’t let your health keep you from getting the insurance protection that you and your family deserves.

Everyday I speak with people in unique situations looking for life insurance. By sharing their questions and my responses perhaps I can help others looking for the same information.

Today I spoke to someone with the following question:

“I missed my life insurance payment with state farm and my $100k policy lapsed I have diabetes type 2 and need to replace that policy looking for $100k policy again. “

Here are the questions I asked:

  • How old are you?
  • What is the treatment for the diabetes (insulin or oral medication or both)?
  • What is your height/weight?
  • Any other health conditions?

The responses were the following:

45 year old male, 6’1 350 pounds, A1c of 7.6, oral medication only, also has sleep apnea (controlled with a CPAP).
Getting approved for life insurance as a diabetic is possible as long as the diabetes is being treated and under control. However with a “build” (which is what life insurance underwriters call height & weight) of 6’1 350 pounds combined with diabetes, this person would be declined for a regular life insurance policy.

The alternative is to consider a graded benefit life insurance policy - also called a simplified issue policy. These type of policies have only a few health questions you have to answer to qualify for coverage. The policy is called “graded” because the death benefit is graded - it increases a bit for the first few years of the policy until it reaches the amount you buy - for example if you buy a $100,000 graded policy, the $100,000 won’t be fully in effect until after 3 years (or two years depending on the company). In the first, second, and third year, coverage increases each year until it reaches $100,000. In this case the 45 year old can get a 10 year term policy for about $200 per month. Whole life is also an option, but term will be significantly cheaper.

Each one of the issues here by themselves would qualify for a regular policy. Someone 6’1 350 might be able to get approved for a policy, barring no health issues. A Diabetic or someone with sleep apnea can get approved as well, the issue here was multiple conditions combined, which would cause a decline for a regular policy and requires us to look at a high risk life insurance policy, or graded benefit policy.

Guaranteed Acceptance Life Insurance

If you’ve been declined for life insurance, don’t assume that you can’t get insurance coverage. There are still several options for life insurance. Nothing should keep you from having the coverage that your family needs.

One option is to purchase a guaranteed acceptance life insurance policy. As you can guess from the name, nobody is turned down for these plans. Regardless of health, complications, or weight. All that you have to do is answer a few basic questions, like age and gender, and then you can get approved for life. While this might sound like the perfect solution to your life insurance problem, there are a few caveats that you should be aware of when you’re shopping around for insurance coverage.

The first is that these plans are going to be more expensive per a coverage dollar compared to a traditional policy. Without the health questions or medical exam, the insurance company is taking a much higher risk to hand out coverage. They are going to offset that by charging drastically higher premiums.

Another problem with these plans is the limit on how much coverage that you can buy. Guaranteed acceptance plans only allow you to buy around $25,000 (depending on the company). For most households, that won’t be nearly enough life insurance. Not having enough coverage is one of the worst mistakes that you can make for your family. Before you purchase one of these plans, take the time to calculate how much life insurance your family would need if something tragic were to happen to you. If you need help doing this, one of our agents would be happy to walk you through the process.

On the other side of the coin, there are a few benefits to choosing one of these plans. The obvious one is that there is no chance of getting rejected for coverage. You can be approved for these policies regardless.

Another advantage is how quickly you can get approved. Because there is no medical exam or health questions involved, this is the fastest way to get life insurance. With a traditional plan, you could find yourself waiting several weeks, or close to two months. Guaranteed acceptance plans will get your life insurance in a matter of minutes. With most companies, it will take you less than an hour to get your life insurance.

If you would like a quote for coverage fill out our quote form below and we can discuss your specific situation. I know that shopping for life insurance can be difficult, but that’s why we are here to help. It’s our mission to help you find the perfect life insurance plan to meet your needs.

If you have any questions about getting approved for life insurance as an applicant that is overweight or has diabetes, please contact us today.