Any good recommendations for where insulin dependent diabetics can find reasonable non employer-based term life insurance policies? I’ve asked this before and never had many answers. Any tips or experiences welcomed.
I looked into this several years ago and the options were not good. Very expensive and coverage was minimal. I needed a large keyman insurance policy and nobody would write it anywhere in the world. Lloyds of London came closest to a possibility.
Second to die policies were available but just did not fit my situation well at the time. If you are able to do a second to die policy, I would start there. I would think that policies of all kinds will become more and more available as an insurance company can evaluate risk based on many more factors now given modern technologies, especially if you have a CGM history.
When I first applied, the insurance companies all said that it would be highly unlikely for me to live longer than age 65 and certainly would not make it to 70. Well, I am over 70 now.
One of the things that’s caused me great hesitation is that I’ve heard that there is an underwriters exchange where if any insurer denies you a policy it makes your chances pretty much nil for getting a policy from anyone else. I don’t know if that’s accurate or any of the details on how it works—- id love it if someone who works in insurance could explain more about if that’s a thing.
I are not a expert… but suggest seeing if there is an association you can join to buy into their group policy. I used to get term life from an engineers association plan. I don’t recall a health questionnaire for that policy I had (which was about $200k) but I do recall there was a health exam component to buy a large-ish policy. The only conditions for renewal were continued membership in the association and willingness to pay the increasing premiums with increasing age.
Yeah, but when they continuously raise the premium as you get older (and if all goes well—- more financially established) it’s almost a self defeating policy over time… the term policies id be most interested in are a fixed rate from the day they’re issued until they expire… in my thinking that’s a “true” term policy
Not sure how affordable that type of policy is. At one point (pre diagnosis, I was in my mid 40’s when I bought it) I had a “level premium” policy where the premium was level for X years, I think it was 10 years. After those 10 years the premium would have reverted to age rated had I kept that insurance, which I did not. The premiums for the typical term life go nuts as you get older. After I retired I figured why bother with life insurance and I dropped it.
My term policy has a fixed rate for the duration of the term… 20 years in this case… then it’s said and done and if I wanted a new one I’d have to open a whole new policy that’d be of course much more expensive… that was always my understanding of a normal term policy is that they cost exactly x amount per month or however often you pay them until they expire… the figuring of your age happens when they issue the policy and it’s duration…
I’m not any expert either but anything in which they’re periodically raising the premium according to your age doesn’t seem like a traditional term policy at least in terms of the ones I’ve shopped for and been quoted etc…
@Sam19 Look into Triple A. We have life insurance policies through them.
Do they offer large policies? 7 figure?
Any estimate how much more you’re paying for a policy compared to what someone without diabetes would be for same?
I’m not sure. I just asked my husband and he doesn’t know if they go as high as seven. He said he has six and I have five.
I have no information about this item other than I know Chris Stocker.
here is a link to a January 2019 item on his blog…
I applied for a 1M 30 year fixed term policy recently at age 37 with a very large well known well established insurance agency that I do all my other insurance through. The quick-quote thing on the website estimated about 160/ month.
Went through the application process and physical, was pretty nervous about the whole thing. They called yesterday and said I’d been approved for the policy but my rate class had to be adjusted due to “history of diabeetus.” They explained that they have 26 different rate groups for various risk assessments and I landed in the 5th from the best So the new price for a 30 year 1 million dollar escalated rather quickly to $314/mo. That seems like a lot but I guess it’s basically comparable to a reasonable car payment—- and a family’s financial security is far more important than that. They also outlined a lot of other options for shorter terms and/or lesser amounts that would reduce the cost if interested.
Long and short of it is that with well controlled type 1 insulin dependent diabetes I was able to secure a substantial term life insurance policy that covers my family all the way into “retirement age” but at an increased price