September, 2017 | Vista Life Plan

If you’ve been diagnosed with diabetes, you’ve probably always assumed an affordable life insurance policy isn’t an option for you. With over 29 million people in the United States (9.3%) now dealing with such a diagnosis, life insurance carriers have recognized the need for affordable options. Many have developed policies specifically geared towards diabetics, many with no exam required.

Let’s take a look at how your diabetes could affect your ability to obtain a policy and what, specifically, affects your rates.

How Does Diabetes Impact Life Insurance Rates?

As with any life insurance policy, the healthier you are, the lower your insurance costs will be. There are a number of factors that go into determining life insurance with diabetes rates.

If this is a recent diagnosis, the time to purchase a life policy is now. As time goes on, fluctuating blood sugar levels, as well as blood sugar medications, stand to harm your body.
Is your diabetes under control? Are you responding well to treatment? What healthy lifestyle changes have you made?
What type of medications are you currently taking?

While a type I diabetic taking insulin is considered more at risk than a type II diabetic taking oral medications or a diabetic controlling their blood sugar through diet, there are options for everyone. The key is to follow your healthcare provider’s treatment plan and remain diligent in controlling your blood sugar.

What Other Factors Might Influence My Rates?

If you’ve been diagnosed with other health conditions, in addition to diabetes, it could influence your ability to find an affordable life insurance policy.

Influencing health conditions include:

A history of smoking
Uncontrolled blood pressure
Uncontrolled cholesterol
History of heart disease
Kidney disease
Neuropathy, particularly in your extremities
Vascular disease
Obesity

What Aspects of My Diagnosis Will Affect My Eligibility and Rates the Most?

If your diabetes is not under control, underwriting will likely deny your application. Underwriting will also consider the following factors:

Your A1c level: Anything below 7.5 is considered good. Some underwriters, however, will accept an A1c level of up to 8.5.

Your fasting blood sugar level: While applicants with blood sugar levels of up to 180 are often considered, 140 and below is viewed as the ideal range. Some insurance companies consider fructosamine levels during the application process. Ideal levels are 1.5-2.5.

Current medications: What medications are you currently taking and how effective are they at controlling your levels? How well are you monitored by your physician?

Age of diagnosis: What age were you diagnosed? The older in life you were diagnosed, the more likely you are to qualify at an affordable rate.

What Can I Do to Get the Best Life Insurance Rates?

Your best bet is to identify insurance carriers that specialize in high risk policies or one that offers “clinical underwriting.” The “clinical underwriting” process looks at the full picture, evaluating your overall health, rather than focusing on specific health risk factors.

There are a number of insurance carriers that offer affordable policies. When you are ready to begin the process, consider working with a reputable insurance agent in your community. They’ve built professional relationships with each carrier. Their experience will offer invaluable insight into which carrier is the best fit for you and your unique situation. Disclose all details of your health history; surprises could lead to higher rates or, in some cases, policy denial. Most importantly, work daily to live a healthy lifestyle and control your blood sugar. Not only will this assist in finding the most affordable rates, it will ensure your life insurance policy isn’t needed in the near future.

The loss of a loved one is always a difficult and stressful time. In addition to going through the stages of grief, we’re often faced with making difficult decisions regarding the deceased’s burial. Bills must still be paid and, oftentimes, financial and legal issues must be addressed.

Fortunately, you and your loved one set up a life insurance policy to help you get through this distressing time. While a part of you might feel uncertain about filing a death benefit claim, keep in mind that the purpose of this policy was to help you cope as you get accustomed to this new normal. The expenses that emerge shortly after a loved one’s death are often significant. Surprisingly, many individuals abandon their loved one’s life insurance policy, leaving over $1 billion in unclaimed life insurance benefits. Don’t put you and your family through additional unnecessary turmoil. File for the benefits due to you.

While the specifics vary slightly from company to company, below are the next steps you must take to file a claim.

1) Find a Copy of the Policy

Hopefully, you’re aware of where the deceased’s life insurance policy is located. If not, nightstands, bookshelves, filing cabinets, and desks are the most common places for storing important papers.

Tip: In many states, safety deposit boxes are sealed immediately after one’s death. To avoid settlement delay, encourage loved ones to avoid storing their policy in a safety deposit box.

2) Check to Ensure There Aren't Any Other Policies

Many employers offer life insurance, accidental death, and dismemberment riders as part of their benefits package. Check with your loved one’s human resources to see if there are any additional policies you weren’t aware of.

Surviving family members are also often entitled to a small burial benefit (or monthly survivor benefits) through Social Security. Additionally, if your loved one was traveling when he/she passed, check with a representative from the credit card that was used to make travel arrangements.

3) Notify the Agent

As soon as you’ve located the policy paperwork, you’ll want to notify the insurance company. If an independent agent sold you the policy, consider contacting them directly. She can act as an intermediary with the insurance company, ensuring the process goes smoothly. If the deceased purchased a group life policy through their employer, the human resources department can assist you in filing your claim.

4) Obtain Copies of the Death Certificate

A certified copy of the person’s death certificate is required to file a death benefit claim. This can be obtained within a few weeks of their death, through the vital records department in the state in which he/she resided. The funeral director can assist you in acquiring this information.

5) Request Claim Forms From Insurance Company

Request a copy of the claim forms needed to file for benefits. Review the paperwork carefully and be sure to gather any additional paperwork that may be required.

If you’re unable to fill out the forms or simply do not understand portions of the paperwork, ask your estate attorney or insurance agent for assistance. Each beneficiary will have forms to fill out and sign.

6) How Do You Want Benefits to Be Paid?

There are typically multiple payment options available to beneficiaries. Check with your financial advisor, insurance agent, or estate attorney regarding these options. They can help identify the best possible payout for your unique situation.

7) Submit Completed Forms to Insurance Company

Return your completed forms, along with a certified copy of the death certificate and any other required paperwork, via certified mail or with a request for return receipt. Most states require life insurance benefits be paid within a certain amount of time, but the number of days vary from a few weeks to a few months.

If you’re unsure if your loved one had a life insurance policy, MIB’s policy locator service may help you find the information you need. The American Council of Life Insurers (ACLI) is also a great resource for finding missing information.