What kind of life insurance can you buy if you’re diabetic?
Honestly, the types are not really too different than the types of policies any other non-diabetic can buy. Read below and see which one fits your individual needs.
There are some a number of life insurance options for diabetics.
Term Life Insurance
Term Life Insurance is the most affordable life insurance policy you can get. Simply put, a Term Life Insurance policy only covers a lump sum non-taxable death benefit.
It’s called Term because even though you’re covered for life, life insurance companies sell in a packet of years such as 10, 20 or more years.
Term insurance can cover you for either short periods or longer periods such as when you are most vulnerable financially.
You can use it to create an estate, provide for your children’s tuition, and use it to cover existing business loans or to handle estate taxes.
Additionally, there are many policies you can purchase which you can do without having to get a medical examination.
Whole Life Insurance
Whole life insurance is also called ‘Permanent Insurance.’ It’s intended to cover you for life. It provides a complete insurance coverage package.
It consists of 2 components including death benefits that exist for the life of the policy. The death benefit is tax-deferred which means that it cannot be taxed when it is paid out.
You also have the advantage of a cash accumulation. This means a portion of your premium is set aside and invested by the insurance company in a tax-sheltered investment account. Over time, it grows. Like the death benefit, the cash accumulation is tax exempt.
Universal Life Insurance
Universal life insurance is also a type of permanent insurance. It’s similar to whole life but with a difference.
There are two features for this policy including death benefits and a cash value accumulation.
A portion of the premium is invested by the insurance company into an investment portfolio of your choosing. You are guaranteed a specific rate of return regardless of how well the market does. But, if your investments perform better than the minimum guaranteed amount of investment, you reap the benefits as well.
This is the big difference between universal life insurance and a whole wife policy. Why? With a whole life policy, you can’t change the premiums to suit the economic situation.
Business Life Insurance
This type of coverage is ideal for sole proprietors to cover their business and financial obligations should they die without causing a financial burden on the survivors.
There are a number of tax advantages. Most of the payouts a company receives when the company is the named beneficiary are tax deductible. The tax deduction advantages can be better spelled out by your insurance agent.
Business Life Insurance can be applied in a number of different ways including buy-sell agreements, employee benefit programs, key-man coverage, and guaranteeing a business loan
Guaranteed Issue Life Insurance
This form of coverage may of particular interest to people with diabetes. This type of coverage is especially designed for people with high-risk medical conditions who may not be accepted otherwise.
No questions, no medical exam. Just straight coverage – no hassle, no fuss.
This policy is good for people aged 25-80 and can provide life insurance coverage for death benefits which range from $5000 – $25000 dollars.
Insurance Riders
In addition to the above policies you can also purchase the following riders to supplement and bolster your life insurance coverage.
Return of Premium – This rider will return the total amount of premiums you have paid during the life of the policy.
Waiver of Premium – Some insurance companies have a rider you can add as an additional safety in case you’re not able to pay your premiums. If something were to happen, and you couldn’t make your monthly payments (or yearly), you can get your premiums waived if you qualify based on their standards.
Children’s Term – This rider adds an additional set of coverage to protect your child. The ride allows you to get coverage on your child from the day they are born until they turn 18. They are small plans, very similar to a funeral plan.
Term Conversion – not every company has these riders, but for the ones that do, it can be a nice add-on. It lets you change your term plan to a permanent form without having to go through the medical underwriting.
Life Insurance with Critical Benefits – A rider which is very much akin to long care coverage with some differences.
Picking a Plan
Now that you know the types of plans, you have to pick one. How do you make your choice?
Well, you’ll need to do some research and ask some hard questions. For example, you need to decide what your family’s needs are and how long they will need coverage. If you plan to retire at 62, with all of your family out of your house, then a term policy could be the best choice.
If you are younger and you don’t know what the future holds, maybe a whole life plan will fit your needs. You won’t have to worry about what the future has, you’ll have coverage regardless.
If you’re having problems deciding which kind of policy would be best, then we would love to talk to you. We can ask you the hard questions and get to the root of your needs.
We know this is a lot of information and it can be crazy and annoying, but life insurance is worth the trouble. The good news is, it doesn’t have to be this hard. It could be one of the easiest purchases you’ll ever make.
In summary, there’s no particular best type of life insurance for diabetics. Each scenario is different. Request a quote, and we’ll call you with your options.
