We’ve been hitting them out of the park on type 2 diabetes underwriting for quite some time, but that pot at the end of the rainbow, fair underwriting for type 1 diabetes, that we never have been able to get to is finally coming within reach.
Given certain guidelines, we now have a company that is willing to be more aggressive than anyone in the past on early onset type 2 diabetes and juvenile onset type 1 diabetes. Three months ago we couldn’t find anyone that would jump on board that wagon, but as the world spins…….
So, some guidelines. I know it’s not going to be the answer to everyone’s wishes, but it’s a start in the right direction.
First let’s talk about type 1 diabetes. Type 1 is aka insulin dependent diabetes, aka juvenile onset diabetes. Type 1 by definition is your inability to produce insulin at all. This has historically been a tough underwriting challenge just because in the absence of the willingness and ability to closely monitor and control the issue, complications are plentiful and damaging.
What this company is saying is that they are willing to approve business on people whose diabetes is diagnosed as early as age 10 with a track record of reasonable control and no complications for as much as 20 years. I’m hearing people scream foul because that makes the person 30 before they can get life insurance, but tell me the last time you heard of a 30 year old type 1 diabetic paying less than $1000 a year for $250,000 of 30 year term insurance or $600 for a 20 year term. It may not be all that everyone wants, but it’s a home run for those that fit. I am still fighting the fight
on those younger type 1 diabetics and will keep you posted on that.
The company is saying that as the age of onset increases, the number of years of control and no complications will decrease and the rate class will improve. Underwriting treatment for type 1 diabetes diagnosed after age 20 will be very similar to that of type 2 diabetes. So let’s talk control and complications.
Control will be measured by an hbA1c under 7. We were told that it could be above 7 (as in under 7.5) but that all other risk factors had to be good. No complications!! Type 1 diabetes complications run the gamut from heart disease and kidney disease to neuropathy and eyesight problems.
I would leave everyone wondering if I tried to outline all of the different possibilities, but suffice it to say that there are possibilities today for type 1 diabetes life insurance coverage that didn’t exist even a few weeks back. And then there are the changes in the underwriting for type 2.
That same 30 year old with type 2 diabetes, no other risk factors or complications could get $250,000 of 30 year term insurance for as little as $630 a year and a 20 year term for under $400 a year. I have often referenced the underwriting being much harsher than that on type 2 diabetes onset before age 50 and definitely before age 40. Home run!
Bottom line. If you have diabetes it’s time to do some shopping. Yes, it’s an A+ rated company and yes the rates are guaranteed level. Good control, no other risk factors and no collateral health issues and you can be knocking it out of the park too.