Life Insurance

[sierradawn]

Has any of you been able to get life insurance after being diagnosed with Type 1 Diabetes? My husband's uncle is a life insurance broker and is having a hard time finding a company that will insure me. He wanted me to ask other diabetics if they were able to get it and which company.

Thanks!

[JasonJayhawk]

1) Check your MIB report. You get it free once a year. Do a search for Medical Information Bureau (MIB) and call the phone number and request your report. The MIB is just like the 3 big credit reporting agencies, only they do it on your health.

2) If your MIB report shows a dx of Diabetes, you'll never get any life insurance over $10K in most states.

3) Most (large) employers will offer life insurance as part of a benefit, usually 1 or 2x your yearly salary. Some will offer even more without a medical exam, usually up to 10K, but it varies. General advice for people is to check their employer's benefits plan, if they have one.

4) The following advice may upset some, but I'll tell it to you because people are doing it, people just feel uncomfortable discussing it publically. If your MIB report does not indicate diabetes, you can sign up for any life insurance that you'd like and take the health exam. HOWEVER, when you take this health exam, your A1c must be in "normal" ranges, you must show no kidney damage, and your instant glucose reading must be in "normal range." If any three of these are out of range, you will be sent a denial letter. However, if you do manage to accomplish passing your blood work, congratulations..... you have life insurance. But you're not in the clear yet.

4a) The life insurance company has TWO (2) years [at least in Kansas and Missouri, that's all I know, you'd have to find out] to find out if you falsified anything on your application. This means they could have you come in for another blood test in one year, or if they check your MIB report and find out that a private health insurance policy has reported your condition, then you're out of luck.

4b) If the LIC (life insurance company) finds out you did not indicate your diabetes condition in two years after the policy start date, they are required to send back all your payments, without interest. You've just lost investing up to 2 years' of money. The only thing they get to keep is your application fee (if applicable).

4c) If the LIC does not find out after two years, tough luck on them. The law (at least in KS and MO) does not allow them to change their minds after that time.

This condition means you need to stay alive for at least two years after starting your policy. :saint: :saint: :saint: :saint: :saint:

The hard part is that you'll need to pass the "random glucose" AND the A1c results (and if you've had diabetes for awhile, it's quite likely that you'll have some bad kidney results, too). Obviously, you would not be able to declare the current medications that you're on, because those also would flag you.

And if you're hypoglycemic when the results are taken for the random glucose reading, you just lost your chance for coverage.....trust me, they know what you were trying, and they see it ALL THE TIME -- you wouldn't be the first to try it.

Oh, and if you lost, there is no "game reset" button. Your bad results get reported to the MIB, so any other LIC will find your past attempt. ***

I probably shouldn't have given that last bit of advice, but maybe it will help someone who has bad luck with the "system."

***If you wait 7-8 years, your MIB report will clear out. Current law states that "credit reports" (including the MIB report) can only contain 7 years of information. Check your MIB before you assume anything, though.

[JasonJayhawk]

One more thing....... now that I'm thinking about it.....

You might not like this, nor will your family members, but life insurance is a very big commission-based item.

Therefore, that "friend" who can get you a "great deal" on life insurance is really not a friend, or at least, won't be if you ever cancel your policy. The typical commission rate in the industry is 50% of the first year's policy to the salesperson and then a percentage of that (it varies, but it's a nice figure through the life of the policy).

You should walk... no.... run.... when a "relative" or "friend of a relative" tries to offer you life insurance, unless you are on good terms with this relative, and you're willing to give them money, and they won't be peeved off should you decide to cancel your policy in their lifetime.

Generally, it is a bad idea to buy through any relatives. The salesperson has only one interest -- the commission -- and despite what common sense might tell us, they cannot "help" to work the system, as they can only hook you up with a policy, but it is only the policy underwriter who makes the decisions -- NOT the salesperson.

Oh, and if you've already applied for life insurance and identified your diabetes condition, it's probably been reported to the MIB.... so you'll need to wait another 7-8 years.

[Simon]

In the uk it's not that hard to get life insurance as a type 1 but getting critical illness cover in case you can't work is much harder. I did manage it through a specialist broker so you might like to trawl the internet to se if you can find something similar over there. My experience is that insurance companies lovwe to charge way over the odds for such cover so be prepared for a shock. In general if you can do without insurance then don't bother.

[JediSkipdogg]

From www.Diabetes.org (http://www.diabetes.org/advocacy-and-legalresources/healthcare/lifeinsurance.jsp)

Once a person is diagnosed with diabetes, life insurance policies sold within the United States can become unaffordable or unavailable. This is because life insurance policies are allowed by state and federal law to "rate" or charge a premium based upon an applicant's health status. In addition, a plan can choose to not provide a policy based upon an applicant's health status.

Even so, it is possible for many people with diabetes to find affordable life insurance policies within the United States. You just have to know where to look. Certain life insurance companies, or carriers, specialize in selling policies to people with chronic health conditions like diabetes.

To find the best life insurance policy for you, please consider the following:

A major factor in the cost of life insurance policies for people with type 1 or type 2 diabetes is how well they manage their diabetes. If you have a lower A1C, good blood glucose control, lead a healthy lifestyle, and do not have complications from diabetes, chances are your rate will be more reasonable too.


Find an insurance agent that is experienced in obtaining policies for individuals with "impaired risk" -- they will know what carriers may offer you a policy and which one(s) may not.


Apply for a policy with a life insurance carrier that uses "clinical underwriting" -- a process that looks at your total health, not just what health conditions you may have.


Shop around -- on the internet, by phone, or through referrals from family and friends. Becoming your own advocate will help you to find a life insurance policy that best fits your needs.


Never take no for an answer! Just because one company rates or declines your application does not mean that another company will not look at you more favorably.


....I for one am lucky to have it through my job. It covers me at 1x my salary but that's only while I'm employed here. So when I retire 30 years down the road I may have a problem finding it. However, my work already told me that upon retirement they offer you the ability to continue paying on your own into the life insurance plan they carry (assuming you've made no claims) and that they won't deny anyone signing up for it.

[Belinda]

Wow I didn't know of the MIB...

You can request a copy..toll free number is 866-692-6901

[jeggeman31]

I pay $99.00 a month for my life insurance for $100,000 on me and $10,000 on each of my 3 kids. They don't rank you as 1.5 just type 1 or 2 and ranked me as type 1. My payment is clumped together, and I think I pay $21 for the 3 kids and the rest goes to mine. Their website is http://www.westernsouthern.com/

[seacomp]

So when I retire 30 years down the road I may have a problem finding it. However, my work already told me that upon retirement they offer you the ability to continue paying on your own into the life insurance plan they carry (assuming you've made no claims) and that they won't deny anyone signing up for it.
The comments in this thread seem very reasonable to me, but I had to comment on this quote.
The product being talk about is life insurance. It's purpose is to provide for the family if a breadwinner is lost. Therefore, life insurance when you retire is meaningless (unless it's "full" life, which is really an savings plan with insurance on the side).
There is only one kind of claim that can be made on life insurance, and that claim can't be made twice.

[kgm0612]

I've had a life insurance policy of $75,000 for 25 years, way before being dx'd with diabetes, and a $10,000 policy through my job. I have never looked into whether or not I could up my $75,000, say to $100,000 or more, without having to fill out a medical form. I'll have to look into this.

My younger brother has had type 1 for twenty years. My mom took out a $5,000 policy for him about a year before he was dx'd. He has insurance through his employer but will lose it because the company is closing down as of Sept. 1st. He has tried for years to get an insurance policy on his own but can't find anyone to insure him.

Karen

[JediSkipdogg]

The comments in this thread seem very reasonable to me, but I had to comment on this quote.
The product being talk about is life insurance. It's purpose is to provide for the family if a breadwinner is lost. Therefore, life insurance when you retire is meaningless (unless it's "full" life, which is really an savings plan with insurance on the side).
There is only one kind of claim that can be made on life insurance, and that claim can't be made twice.

I do mostly agree it's meaningless when you retire but only under certain circumstances. It all depends on the person and how well they save money and what kind of retirement plans one has set up. Like my retirement account, when I retire I can take the payment plan all upfront where my spouse gets nothing upon death.

I do think after retirement life insurance plans are just fancy savings plans and you could actually make more money if you just invested in a CD or some other high interest earning account.

[sierradawn]

Thank you all for your very helpful replies and advice!!