Ben Nguyen 
Getting life insurance coverage can be difficult for Canadians living with diabetes. However, with proper diabetes management and a knowledgeable advisor on your side, affordable coverage is possible. This comprehensive guide provides everything you need to know about purchasing life insurance for diabetics in Canada.
How Diabetes Impacts Life Insurance Rates?
Insurance companies consider diabetes a high-risk condition. This results in potential higher premiums or difficulty getting approved for coverage. Here’s an overview of why diabetes affects life insurance rates:
Fluctuating Blood Sugar Levels
The blood sugar fluctuations and instability associated with diabetes place extra stress on vital organs over time. This increased strain raises the chances of developing complications like kidney disorders, cardiovascular disease, stroke, and blindness. Insurance providers know diabetics face elevated long-term health risks, which makes them riskier to insure.
Increased Mortality Risk
According to Diabetes Canada, people with diabetes are twice as likely to die compared to those without diabetes. They also face higher chances of developing potentially fatal health complications. Insurers charge higher premiums because the probability of them having to pay out your policy’s death benefit is greater if you have diabetes.
Type 1 vs. Type 2 Diabetes Risk Profiles
In general, type 1 diabetes is considered a higher risk than type 2. With type 1 diabetes, the body stops producing any insulin. This form of diabetes also tends to be diagnosed earlier in life. The combination of lifelong insulin dependence and early onset increases susceptibility to complex health issues and mortality rates.
Type 2 diabetes is more manageable with lifestyle changes, diet, and oral medication. It tends to develop later in adulthood. While still posing elevated risks, type 2 diabetes is regarded as less risky for insurance purposes versus type 1 diabetes.
Insurance Company Perspective on Risk Factors
When evaluating applicants with diabetes, insurers delve deeper than just a diagnosis. They examine a multitude of risk factors that give insight into how well your diabetes is controlled. Insurers look at blood sugar management, the presence of complications, additional health problems, lifestyle choices, and overall stability. If multiple high-risk factors are present, your premiums will climb higher.
Can Diabetics Get Approved for Life Insurance in Canada?
The good news is that getting life insurance approval with diabetes is definitely possible in Canada. Here’s what you need to know:
- Diabetics who maintain healthy blood sugar levels and have no severe complications can often qualify for standard insurance rates.
- Being honest about your diabetes condition when applying is crucial. Failing to disclose this pre-existing illness can get your application denied or lead to issues later on if you need to make a claim.
- While traditionally underwritten policies require medical exams and records, diabetics can also consider no medical exam life insurance options which base approval on simple questionnaires instead.
- Even diabetics with complications or related disorders can still get coverage through guaranteed issue life insurance, although at higher premium costs.
So while approval may be tougher and require finding the right insurer, Canadians with diabetes should not assume they are excluded from getting life insurance. There are policies available regardless of your situation.
How Insurers Assess Risk for Diabetics?
Insurance providers conduct detailed assessments to gauge the mortality risks of insuring diabetics. Here are the key factors they evaluate:
Type of Diabetes – As outlined earlier, type 1 diabetes represents greater risks overall due to insulin dependence and earlier age of onset. Type 2 is regarded as more manageable.
Age of Diagnosis – Being diagnosed with diabetes at a younger age means extended exposure to fluctuating glucose levels and a greater probability of developing related complications sooner. Diagnosis later in adulthood poses fewer risks.
Diabetes Severity and Control – Insurers heavily analyze your A1C blood test results, insulin usage, and blood sugar logs to assess how well you are controlling diabetes. Favorable, stable control equals lower premium markups.
Presence of Complications – Providers check for diabetes-related issues like kidney disease, neuropathy, retinopathy, and cardiovascular disorders which boost mortality risks significantly. Absence of complications reduces your premiums.
Use of Medications and Insulin – Your specific medications, dosages, and daily insulin units can indicate how severe your diabetes is. Needing intensified treatment suggests your diabetes is more difficult to control.
Additional Health Conditions – Insurers also examine reports for other medical conditions you may have like high cholesterol, hypertension, obesity, or chronic diseases. More health issues compound the risks of insuring you.
Lifestyle Factors – Assessing your lifestyle gives clues into your overall health risks. For instance, smoking and excessive alcohol use negatively impact premiums due to aggravating diabetes complications.
Insurers compile all these factors into a complete health profile and risk assessment. The greater your risks, the higher your life insurance rates. Taking steps to manage your diabetes rigorously and live healthily is key to reducing premium costs.
What Types of Life Insurance Policies Available for Diabetics?
Diabetics in Canada can choose from various life insurance options. Here’s an overview of the main policy types available and their pros and cons:
Term Life Insurance for Diabetics
- Provides pure death benefit protection for a set period of time, usually 10 to 30 years.
- Typically the most affordable option, making it popular among diabetics seeking temporary coverage.
- Premiums guaranteed not to increase during the term. Ability to renew policy or convert to permanent life after term expires.
Full review: What is Term Life Insurance?
Permanent Life Insurance for Diabetics
- Offers lifetime protection as long as you pay the premiums.
- Includes a savings or investment component that builds cash value you can borrow against.
- Premiums are fixed after the initial rate but cost more overall than term life insurance.
- Types include whole life and universal life. Suitable for long-range financial planning when paired with a term policy.
Full review: What is permanent life insurance?
Simplified Issue Life Insurance for Diabetics
- Requires answering health questions but no medical exam for assessment.
- Quick approval process makes it easier for diabetics to qualify.
- Coverage amounts tend to be lower and premiums higher versus traditionally underwritten policies.
Full review: What is Simplified Issue Life Insurance?
Guaranteed Issue Life Insurance for Diabetics
- No medical exam or health questions required, approval is guaranteed.
- Caters to diabetics unable to qualify for other types of life insurance.
- Maximum coverage amounts are lower, and premiums are substantially higher.
- Typically a 2-year waiting period before the full death benefit can be paid out.
Full review: What is Guaranteed Issue Life Insurance?
Every diabetic’s situation is unique, so speak to an advisor regarding the right policy type for your needs.
The Life Insurance Application Process for Diabetics
Here is a step-by-step overview of what to expect when applying for life insurance coverage as a diabetic:
Gather Your Medical Records – This includes blood tests showing your A1C levels, blood sugar logs, prescriptions lists, and reports from any specialists you see regarding your diabetes. These provide detailed data about your condition to share with insurers.
Prepare for Potential Additional Requirements – Some insurers may request you get new lab tests done or undergo a full medical exam as part of underwriting. They may also ask your physician for an Attending Physician Statement (APS) outlining your health status. Know that you may have to complete extra medical screening.
Answer In-Depth Questions – You will be asked very specific questions about your diabetes diagnosis, your medications, daily management routine, diet, presence of any complications or related conditions, and family history. Providing comprehensive details gives the insurer an accurate view of your health risks.
Wait for Policy Approval – It may take 2 to 6 weeks for your application to get assessed. Diabetic cases often undergo further scrutiny. Your medical history gets reviewed by the underwriting department before finalizing a decision on coverage and premiums. Be prepared to wait longer than applicants without diabetes.
Review Alternative Options If Declined – If your application gets declined by one insurer, apply with others as each company has different risk assessment standards. Also consider no medical exam life insurance which has easier acceptance criteria.
Working with an independent insurance broker life Lifebuzz who specializes in high-risk cases can streamline the application process for diabetics. An experienced agent will know which providers offer the best rates for your profile and take care of collecting and submitting all required medical documents for assessment on your behalf.
Check out: Life Insurance Rates By Age Chart in Canada
Getting Affordable Premiums with Diabetes
While life insurance can be more expensive with diabetes, there are ways to improve your chances of getting affordable premiums. Here are the 7 key factors that impact your rates:
Your Age – Applying earlier in life can mean lower rates that you can lock in for future renewals. Insurers charge higher premiums as you get older.
Date of Diagnosis – The longer you’ve lived with diabetes, the higher the risk of developing complications which raises premium costs. Being diagnosed more recently may mean better rates.
Type of Diabetes – As mentioned earlier, having type 1 diabetes poses greater risks than type 2, which translates into higher premiums.
Blood Sugar Control – Insurers will assess your A1C levels from blood tests to gauge your diabetes control. More stable levels signal lower risks for complications and mortality, which could lead to discounted premiums.
Presence of Complications – Diabetes-related conditions like kidney disorders, nerve damage and cardiovascular disease will significantly increase your premiums due to amplified risks.
Additional Health Conditions – Any other medical issues you have beyond diabetes will also raise your premium costs. The more health problems you have, the higher the risk you pose to insure.
Lifestyle Factors – Living an overall healthy lifestyle, including diet, exercise, maintaining a healthy weight, and avoiding smoking and excessive alcohol consumption, can help counterbalance some of the risks of diabetes and potentially reduce your rates.
Here are 8 tips for getting the best rates possible as a diabetic:
- Keep your A1C levels within the target range to prove effective diabetes management
- Adopt healthy lifestyle habits like eating well, staying active, and losing weight
- Avoid smoking and limit alcohol consumption, which exacerbates the risks
- Compare quotes from at least 3 to 5 different insurance providers to find the best rate
- Work with an independent broker who can shop the market for you and find the most affordable options
- Look into no medical exam life insurance, which may offer an easier route to approval
- Ask providers about policy discounts you may qualify for as a non-smoker or through associations you belong to
- For permanent life insurance, choose a lower-cost universal life policy over whole life insurance
The key is optimizing all controllable factors so that you can offset the risks of diabetes as much as possible. This will require some work upfront managing your health, but can pay off with much lower life insurance premiums.
Full review: How to Find the Best Life Insurance Broker in Canada
Top Life Insurance Companies for Diabetics in Canada
Specialized life insurance carriers cater to diabetics with customized plans and potential discounts. Here are the top recommended life insurance providers in Canada to consider:
Sun Life Financial
- Offers Term Insurance for Diabetes, providing access to diabetes education and health coaching for better management
- The program rewards clients for healthy actions, potentially reducing insurance rates over time
- Specialized term life insurance product catering specifically to Canadians living with type 1, type 2, diagnosed pre-diabetes or gestational diabetes
- Higher chance of approval and more affordable premiums compared to traditional policies
- First comprehensive term insurance solution with bundled access to diabetes management resources
Full review: Sun Life Insurance Canada
Canada Protection Plan
- Leading provider of no medical exam life insurance
- Simplified issue and guaranteed issue policies make approval straightforward
- Plans available for diabetics who have been declined elsewhere
- Range of term lengths and coverage amounts
Full review: Canada Protection Plan CPP Life Insurance Reviewed
Manulife
- Vitality program incentivizes healthy habits, which can reduce premium costs
- A points-based system rewards exercise, nutrition, checkups and monitoring of blood sugar
- Term life and permanent life insurance choices
- Ideal for diabetics seeking to lower insurance rates through lifestyle changes
Full review: Manulife Life Insurance
BMO Insurance
- Accessible simplified issue term life insurance, no medical exam required
- Lower-cost premiums versus some no medical exam providers
- Range of 10- to 30-year terms
- Well-suited for diabetics wanting a simpler, quicker application process
Full review: BMO Life Insurance In Canada
Empire Life
- Competitively priced term and permanent life insurance for diabetics
- Permanent policies include Living Benefit allowing early payout for critical illness diagnoses
- Child term rider can get low-cost coverage for diabetic children
- Good option for whole family coverage, including diabetic dependents
Full review: Empire Life Insurance Review in Canada
In addition to diabetes, being diagnosed with other health conditions can also affect your eligibility for life insurance coverage and lead to increased premium rates. Some examples of pre-existing health conditions that could influence your application include: Cancer, Stroke, Heart disease, Depression,
Thyroid cancer, Hepatitis, Lung cancer, High BMI, Asthma, Parkinson’s Disease, and more. For a complete guide, read our full review for Life Insurance With Pre-existing Conditions. Gaining insider knowledge on how insurers classify various illnesses can help you better understand the underwriting process. Being informed on factors that influence policies and premiums allows you to make the right coverage choices based on your unique health profile.
Key Takeaways
- Diabetes can make getting life insurance approval more challenging and lead to higher premiums, but affordable coverage options are still available.
- Maintaining well-controlled blood sugar levels and an overall healthy lifestyle helps reduce costs.
- Simplified issue and guaranteed issue no medical exam policies provide viable alternatives for diabetics struggling with traditional underwriting.
- Partnering with an expert insurance broker simplifies the application process and helps diabetics find tailored plans.
- Leading Canadian insurers like Sun Life and Canada Protection Plan offer customized solutions catering to diabetics.
Canadians living with diabetes can still get quality life insurance protection for their families with the right guidance. Despite potential obstacles, make sure to explore all your available options. The key is working with an advisor who understands the unique needs of diabetic applicants.
FAQs for Life Insurance for Diabetics in Canada
How does diabetes affect life insurance rates?
Diabetes increases mortality risk and the likelihood of developing complications, which makes diabetics costlier to insure. Insurers charge higher premiums to offset this extra risk. Rates increase depending on the severity of one's diabetes and the presence of related health issues.
What types of life insurance are available for diabetics?
Diabetics can choose from term life, permanent life, simplified issue, and guaranteed issue policies. Term life is often the most budget-friendly option. Simplified and guaranteed issue plans require little to no medical underwriting for easier approval but may cost you more.
Where can diabetics find the best life insurance rates in Canada?
Specialized insurers like Sun Life Financial and Canada Protection Plan offer competitive rates and diabetes-friendly plans. Independent brokers can compare quotes across multiple top providers to find diabetics the most savings on their coverage.
Why is it harder for diabetics to get life insurance?
Insurers classify diabetes as high-risk, which leads to stricter underwriting guidelines. Diabetics undergo extensive assessments of their diabetes management and health history. Higher associated mortality rates also cause insurers to charge more for coverage.
When should diabetics apply for life insurance?
The best time is when blood sugar levels are well-controlled and overall health is stable. Also ideal is applying after making positive lifestyle changes that lower risks, and at a younger age before rates increase. Waiting until health improves can mean better rates.
Do all life insurance companies approve diabetics?
Not all insurers will approve diabetics, especially if diabetes is poorly managed or complications are present. Guaranteed issue life insurance guarantees approval for diabetics who cannot get traditional coverage. Simplified issue plans also make it easier to get approved without extensive underwriting.
Can pre-existing conditions besides diabetes affect life insurance rates?
Yes. Insurers will assess any additional health conditions and factor those into the final premium cost. Having other disorders like heart disease or high blood pressure on top of diabetes can potentially further increase your rates.
Is life insurance more expensive for Type 1 or Type 2 diabetes?
Coverage tends to be more expensive for those with Type 1 diabetes overall, as it is harder to control and requires insulin dependence from an early age. Type 2 diabetes is perceived as more manageable through lifestyle changes and oral medication.
How can diabetics get more affordable life insurance premiums?
Effective blood sugar management, adopting healthy habits, avoiding smoking, limiting alcohol, maintaining proper weight, comparing quotes across providers, choosing term life policies, and working with a knowledgeable insurance broker can help diabetics find savings.
What are the chances a diabetic gets declined for life insurance?
Diabetics with severe uncontrolled diabetes and related disorders are most likely to get declined for traditional underwritten policies. However, options like simplified issue and guaranteed issue no medical exam life insurance still offer high approval odds for diabetics.
