Everyday I speak with people in unique situations looking for life insurance. By sharing their questions and my responses perhaps I can help others looking for the same information.
Today I spoke to someone with the following question:
“I missed my life insurance payment with state farm and my $100k policy lapsed I have diabetes type 2 and need to replace that policy looking for $100k policy again. “
Here are the questions I asked:
- How old are you?
- What is the treatment for the diabetes (insulin or oral medication or both)?
- What is your height/weight?
- Any other health conditions?
The responses were the following:
45 year old male, 6’1 350 pounds, A1c of 7.6, oral medication only, also has sleep apnea (controlled with a CPAP).
Getting approved for life insurance as a diabetic is possible as long as the diabetes is being treated and under control. However with a “build” (which is what life insurance underwriters call height & weight) of 6’1 350 pounds combined with diabetes, this person would be declined for a regular life insurance policy.
The alternative is to consider a graded benefit life insurance policy – also called a simplified issue policy. These type of policies have only a few health questions you have to answer to qualify for coverage. The policy is called “graded” because the death benefit is graded – it increases a bit for the first few years of the policy until it reaches the amount you buy – for example if you buy a $100,000 graded policy, the $100,000 won’t be fully in effect until after 3 years (or two years depending on the company). In the first, second, and third year, coverage increases each year until it reaches $100,000. In this case the 45 year old can get a 10 year term policy for about $200 per month. Whole life is also an option, but term will be significantly cheaper.
Each one of the issues here by themselves would qualify for a regular policy. Someone 6’1 350 might be able to get approved for a policy, barring no health issues. A Diabetic or someone with sleep apnea can get approved as well, the issue here was multiple conditions combined, which would cause a decline for a regular policy and requires us to look at a high risk life insurance policy, or graded benefit policy.
If you would like a quote for coverage fill out our quote form below and we can discuss your specific situation.