Life Insurance For Canadians With Diabetes

It’s no secret, if you are diabetic and depend on insulin needles life insurance becomes either very expensive or (seemingly) impossible to be approved for.

This holds true for medically underwritten policies. However, Canadians who have type 1 diabetes and depend on insulin still have some great options. Let’s explore your options to being able to own affordable life insurance, even if you have type 1 diabetes.

First, it is worth noting if you are a type 2 diabetic, you will have a few more options than someone who is dependent solely on insulin injections. We will cover this in additional articles. For now, let’s focus on Type 1 diabetes.

How to recognize if you have Type 1 Diabetes

In a perfect world, as someone who is diabetic, you should work with a company that has many different options for insuring someone who has diabetes. The problem here is that for many diabetics, their first point of contact is normally with someone who only has access to 1 insurance company.

If that company doesn’t want to insure them, then the outcome means they won’t get insurance. The real problem is that once one insurance company declines you, your options become even more limited than before.

As I have mentioned if you are type 2 diabetic, you have options, even medically underwritten coverage. If you are Type 1 your options become guaranteed acceptance life insurance. From here you will need to understand the 2 overall categories you might fit in, in order to understand your options.

Option 1 – Type 1 diabetic who has never been turned down for life insurance

If this is you, I have good news. There are many different insurance companies that you could work with. Most of the plans are something you can apply for over the phone, without ever having to speak to a salesperson face-to-face.

As I write this article the amount of coverage you can purchase from these companies range from $5,000 death benefit (as a minimum) and goes upward to $3,999,999 as a maximum.

The length you can have this coverage ranges from 10 years to life (or age 100). So when I say you have options, you really do! It’s always best to speak to a guaranteed issue life insurance broker as these stats and options might change by the time you read this article.

Option 2 – Type 1 diabetic who has been declined for coverage by another insurance company

It’s hard to hear, but this where your options become limited. If you have been declined in the past 24 months you only have a few options available. Your amount of coverage might be limited to a lesser amount and you will likely have to purchase a policy that has a waiting period.

“Wait period: Typically the first 2 years of owning your life insurance policy is considered the waiting period. During this time, if you the life insured were to pass away, your beneficiary would receive 100% of what you put into the policy (your premiums), not the full death benefit. After the 2 year wait period is satisfied the full death benefit would be paid out if the life insured were to pass away.” 

It’s worth noting, that the amount of time since you were declined is a factor. For example, if you were declined for life insurance 5 years ago and have a medical track record with 5 years of good health you will have many more options than someone who was declined 6  months go.

Regardless, what many people do is focus on what’s important. And for many Canadians, it’s making sure that there is some money coming to their loved ones. Type 1 diabetes is one of those cases where we have a pretty good grip on it.

Yes, you will have to take needles however, it’s not as life-threatening as it once was. This is why purchasing guaranteed coverage (even with a waiting period) is a better option than leaving your funeral costs, medical bills, or other debts to your loved ones.

To find out how you can get a FREE quote for life insurance companies that work with people who have Type 1 diabetes.