Your overall health is one of the main factors that determine your eligibility for life insurance — and how much you’ll pay for your coverage. Contrary to what you may think, if you have diabetes you can buy life insurance, but your options will largely depend on the type of diabetes you have, your treatment plan, and how long you’ve been managing your condition.
Life insurance terms you should know
Beneficiaries: The people you name on your life insurance policy to receive the lump sum of money — also known as the death benefit — when you die.
Cash value: The portion of a permanent life insurance policy’s monetary value that grows tax-deferred over the life of the policy.
Death benefit: The amount of money the life insurance company will pay your beneficiaries when you die.
Face amount: The dollar amount, or death benefit, your beneficiaries receive if you die while your life insurance policy is active.
Insured: The person who is covered by the insurance policy.
Policy: The legal document that includes the terms and conditions of your life insurance contract.
Policyholder: The person who owns an insurance policy. Usually, this is the same person as the insured.
Permanent life insurance: A type of life insurance that lasts for the rest of your life and usually includes a cash value account.
Premium: The amount you pay your insurance company to keep your coverage active. Premiums are typically paid monthly or annually.
Riders: Add-ons to a life insurance policy that provide more robust coverage, sometimes for an extra cost.
Term life insurance: A life insurance policy that lasts for a set number of years before it expires. If you die before the term is up, your beneficiaries receive a death benefit.
Underwriting: The process where an insurance company evaluates the risk of insuring you and determines your final rate.
Insurers tend to view type 2 diabetes as less of a health risk than type 1 diabetes because it develops later in life and can often be managed with diet, exercise, and sometimes medication, [1] while type 1 diabetes requires lifelong insulin therapy. [2] As a result, you may be able to pay less expensive life insurance rates — and have greater approval odds — if you have diabetes type 2 than if you do type 1.
However, every insurance company will consider your history of diabetes as well as other risk factors such as your age, gender, lifestyle habits, and overall health to assess your application and set your rates. That’s why finding the right insurer for your particular situation is key.
Our top pick for the best life insurance company for diabetes offers affordable premiums, multiple coverage options, and flexibility when it comes to assessing your condition. We use industry data, pricing from policycentral carrier partners, and ratings from third parties like AM Best and J.D. Power to pick the best insurers on the market. Our independent recommendations will help you get life insurance coverage with confidence.
A note on person-first language
At Policygenius, we generally aim to use person-first language, which emphasizes the person rather than a disability or condition. For example, on this page we prefer using the term “people with diabetes” rather than “diabetics.” However, because some people prefer identity-first language, we do sometimes use these terms to ensure our content is both visible to them and acknowledges the way they identify. For example, though we would normally use the term “people with disabilities,” we know some people prefer “disabled people.” For more on person-first vs. identity-first language, see this style guide from the National Institutes of Health.
The best life insurance company for people with diabetes
Methodology
Why you can trust our picks
Our recommendations are based on internal and external expert analysis, as well as our policycentral Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.
Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at policycentral can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.
Best life insurance for type 1 & type 2 diabetes: Legal & General America
2024 policycentral award winner
Legal & General America
4.9
30+ year terms
All 50 states
No-medical-exam option
Why we chose it
Legal & General America, which also does business as Banner Life and William Penn, has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.
Pros and cons
Pros
Competitive rates for a variety of health conditions
Fast instant-decision option for qualifying applicants
Variety of term lengths up to 40 years
Cons
Application underwriting can take longer than average
Does not have the most competitive rates for older applicants
Our analysis found that Legal & General America, which also does business as Banner Life and William Penn, is the best life insurance option if you have either type 1 or type 2 diabetes. The company offers more affordable rates regardless of your health profile than other companies.
If you have type 1 diabetes and your condition is controlled with fewer than 50 daily units of insulin, Legal & General America will usually approve your application, while other insurance companies might turn you down.
If you have type 2 diabetes, the company can offer you lower rates if your condition was diagnosed at or after age 50 and your blood sugar levels are well controlled.
What do life insurance companies consider when you’re applying with diabetes?
If you have diabetes, the insurance company will want to know more details about your diagnosis, including blood sugar levels, any medications you’re taking, and how long you’ve been in treatment.
Insurers will look closely at the following factors when setting your rates.
Health status
Life insurance companies will likely have you take a medical exam when applying. It’s also common for them to request an attending physician statement (APS) to get more insight from your doctor on how you’re managing your diabetes.
The insurer will ask if you have had any complications as a result of your condition, such as diabetic neuropathy, impaired vision, or impaired kidney function. If you have multiple conditions — for example, diabetes and heart disease — it will be more difficult and more expensive for you to get coverage, but you’ll still have options.
Blood sugar levels
The insurance company will ask for your most recent A1C — a test that measures blood sugar levels over the past three months — [3] as well as your average A1C over the last 12 months.
If you have type 2 diabetes but are following your doctor’s plan and your blood sugar levels are below 7.5, you may be able to qualify for average rates.
If you have type 1 diabetes but you’re taking fewer than 50 units of insulin and your blood sugar levels are below 8, you may be able to qualify for higher-than-average premiums.
Age of onset
The younger you were when you were diagnosed with diabetes, the more expensive your rates will be. People diagnosed over the age of 50 generally receive better rates.
Height & weight
Life insurance companies use your height-to-weight ratio to determine your rates regardless of whether you have diabetes. Because weight loss is often recommended to help manage type 2 diabetes, your height and weight are especially important in assessing your insurance risk if you do have diabetes.
Medications
Insulin and other diabetes medications such as metformin and glipizide are taken into account. The type of medications you do or don’t take, how long you’ve been taking them, and how effectively they control your blood sugar levels indicate to the insurer whether you have your symptoms under control.
Tobacco use
Smokers pay more for life insurance than non-smokers because smoking has known negative health effects. People with diabetes who smoke are more likely to have trouble managing their condition, and also more likely to develop serious health problems, like heart disease. [4] If you have diabetes and smoke, your life insurance costs will be higher.
What information about your diabetes will you have to share when you apply?
The life insurance application process includes a phone interview. To prepare for the call, expect to answer questions about your diabetes history, including:
What was the date of your first diagnosis/onset?
Do you measure your glucose daily?
What was your last A1C reading and what was your A1C average for the last year?
Are you taking insulin or other medications?
Do you have any complications with your eyes, kidneys, or feet as a result of diabetes?
Have you had any amputations?
Are you on dialysis?
Learn more about how the life insurance application process work
Type 2 vs. type 1 diabetes: What health classification will you qualify for?
Life insurance companies set your premiums based on the likelihood that you’ll pass away while your policy is active. Insurers use a health classification system to indicate your risk level — ranging from Preferred Plus to Substandard, also known as table ratings.
Health classifications, explained
Preferred Plus offers the most affordable premiums. It’s usually assigned to people who have no or one well-controlled or resolved minor health condition and no family history of conditions like heart disease or cancer.
Preferred offers the second-lowest premiums. It’s usually assigned to people with one or two well-controlled or resolved minor conditions and no family history of conditions like heart disease or cancer.
Standard Plus offers the third-lowest premiums. It’s usually assigned to people who may have well-controlled or resolved mild-to-moderate conditions and who may have one death from heart disease or cancer in their immediate family.
Standard offers the fourth-lowest premiums. It’s usually assigned to people with well-controlled or resolved moderate health conditions and who may have more than one immediate family member who died of heart disease or cancer.
Table Ratings are assigned to applicants with more serious health conditions and are divided into 10 sub ratings — table 1 has the lowest premiums and table 10 the highest.
Tobacco/Smoker ratings are assigned to people who currently use tobacco or nicotine products or have in the past 12 months. These ratings can also be applied to frequent marijuana users. There are usually three categories for people in this rating: Preferred, Standard, and Table Ratings.
People with type 2 diabetes can qualify for up to Standard, which means you’ll pay average premiums. In comparison, people with type 1 diabetes typically qualify for Substandard ratings, which are reserved for people with a complicated health history and offer higher-than-average rates.
Having type 1 diabetes makes life insurance premiums more expensive than if you have type 2 diabetes or no diabetes. Here’s why:
Insurance risk: Because type 2 diabetes can be managed with certain treatments or medications, insurance companies view it as less risky. By contrast, type 1 diabetes always requires insulin therapy and is considered a higher insurance risk.
Rarity: Type 1 diabetes is less common than type 2 diabetes, which accounts for 90% to 95% of cases in the U.S. [5]
Age of diagnosis: The younger you were at the time of your diabetes diagnosis, the less favorable your life insurance health classification will be because you’ll have had the condition for longer.
Every life insurance company evaluates assesses differently, so it’s important to compare quotes from different insurers because some of them might offer you better rates than others.
The best way to find an insurer that will offer you the most affordable policy for your personal situation is to work with an independent broker. At Policygenius, our experts are licensed in all 50 states and can walk you through the entire life insurance buying process while offering transparent, unbiased advice.
Life insurance options for people with diabetes
The right type of life insurance policy for you will depend on your budget, coverage needs, and whether your condition allows you to qualify for a policy that considers your health profile. Here are your main options.
Term life insurance
Term life insurance is the best fit for most people because it provides financial protection during your peak earning years and is much more affordable than other types of life insurance. It lasts as long as you need — usually, between 10 and 30 years — and doesn’t come with any complex tax restrictions or regulations.
As long as your type 2 diabetes is well-controlled with treatment and medication, you should qualify for a term life insurance policy, just at higher rates than someone with a similar background who doesn’t have diabetes.
Type 1 diabetes won’t automatically disqualify you from term life coverage, either, although your rates will usually be higher than someone with type 2 diabetes.
In rare cases, you can be denied term life coverage if your diabetes symptoms are severe.
Whole life insurance
Whole life insurance is a type of permanent coverage that doesn’t expire and comes with a cash value component that can be used as an investment vehicle. Whole life is generally a good fit for high earners and people with long-term financial obligations.
You can still qualify for whole life insurance if you’re diagnosed with diabetes — although some insurers might not offer you whole coverage if you have type 1 diabetes or additional conditions affecting your health.
Whole life policies are significantly more expensive than a comparable term life policy, and a diabetes diagnosis will further increase their cost.
Final expense insurance
This type of policy, also known as burial insurance, is aimed at covering end-of-life expenses such as a funeral or medical bills. Though it offers higher premiums for lower coverage amounts when compared to term life, most people with serious health conditions are eligible for final expense insurance.
Guaranteed issue life insurance
Guaranteed issue life insurance is a type of final expense insurance that offers near-certain approval and doesn’t require a medical exam or medical questionnaire to apply. The coverage benefits max out around $25,000 and premiums are high. If your diabetes diagnosis disqualifies you from being approved for traditional coverage like term life, guaranteed issue can be a good alternative.
Simplified issue life insurance
This is another type of final expense coverage that doesn’t require a medical exam, but you’ll have to answer a medical questionnaire during the application process. Simplified issue life insurance has slightly lower premiums than guaranteed issue, but you may be declined if you have serious or life-limiting medical conditions. Benefits often go up to $50,000.
Group life insurance
Many employers offer group life insurance for free or at a subsidized rate to their employees as part of a benefits package. Group policies usually don’t have health requisites for approval, so a diabetes diagnosis won’t disqualify you. Coverage amounts are often equal to one to two times your salary, and you usually lose the policy if you leave your job.
How much does life insurance cost if you have diabetes?
The type of diabetes you have, for how long you’ve had it, and how well you’re managing your condition will play a key role in determining the cost of your policy.
20-year term life insurance rates for people with type 2 diabetes
Age | Gender | $500,000 coverage amount |
|---|---|---|
30 | Female | $47.38 |
Male | $51.06 | |
40 | Female | $59.98 |
Male | $74.77 | |
50 | Female | $120.85 |
Male | $170.62 | |
60 | Female | $257.13 |
Male | $359.01 |
Methodology: Approximate estimated rates are calculated for male and female non-smokers with a type 2 diabetes diagnosis obtaining a $500,000, 20-year term policy. Typically, the younger you are at the time of diagnosis, the higher your premiums will be, so different health classifications were used to calculate rates accordingly. Rates at age 30 were calculated using an average of Substandard T4 health classifications; rates at age 40 were calculated using an average of Substandard T3 health classifications; rates at age 50 were calculated using an average of Substandard T2 health classifications, and rates at age 60 are calculated using an average of Standard health classifications. Life insurance averages are based on a composite of policies offered by policycentral from Corebridge Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica, and the policycentral Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 05/01/2024.
20-year term life insurance rates for people with type 1 diabetes
Age | Gender | $500,000 coverage amount |
|---|---|---|
30 | Female | $51.79 |
Male | $61.91 | |
40 | Female | $82.41 |
Male | $103.54 | |
50 | Female | $196.31 |
Male | $278.11 | |
60 | Female | $535.46 |
Male | $763.34 |
Methodology: Monthly rates are calculated for a male and female non-smoker with a type 1 diabetes diagnosis in Substandard T6 health classifications, obtaining a $500,000, 20-year term policy. Life insurance averages are based on a composite of policies offered by policycentral from Corebridge Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 05/01/2024.
What happens if your diabetes gets worse after you get approved for life insurance?
If your diabetes gets worse after you have an existing policy, your premiums will remain the same as long as you pay them, or until the end of the term. The insurance company can’t change rates on an active policy.
However, similar to other health conditions, if you were to apply for a new policy following a significant change to your diagnosis or medications, you’d likely see higher premiums.
What happens to your existing policy if you’re diagnosed with diabetes?
Any health condition you develop after your life insurance policy’s effective date won’t have any impact on your premiums or your coverage, including diabetes. As long as you keep paying your premiums on time, your policy will remain active.
Other health concerns that can affect your life insurance
Certain pre-existing conditions and other health-related concerns can affect your life insurance options or costs. A policycentral expert can help you find the right policy for your needs.
Mental health issues such as depression or anxiety
