Preferred plus life insurance rates and type 2 diabetes are rarely used in the same sentence except possibly in the context of “Your chances of getting preferred plus rates with type 2 diabetes are slim to none”.
That was until last year when ING Reliastar cracked open a window of opportunity. While not a huge window, I’ve been successfully squeezing more and more clients through. The underwriting criteria are short and sweet.
1. The proposed insured is 60 or older.
2. The diabetes was diagnosed in the last 5 years.
3. A1c’s have been running at 7.5 or below
4. No other risk factors (weight, heart disease, etc)
When this would be a best case standard plus with any other company and standard to table 2 with most, preferred plus can mean a lot more insurance for your money or a lot less money for the insurance. Putting this in perspective, a 60 year old male meeting the criteria for $250,000 of 20 year term would pay $1493.00 annually through Reliastar while the next best option would likely be with Banner Life at standard plus, $2035.00 annually. This is awesome news for those over 60 and even over 50 life insurance approvals.
We are also finding real success with well controlled adult type 1 diabetics, both juvenile and adult onset. We’ve recently been doing some advertising of the criteria for success with type 1 diabetes and are finding that when the criteria are clearly spelled out even those who have been declined through other agencies are willing to give it another try. The criteria are again very straightforward and easy to understand.
1. If adult onset, more than a year since diagnosis and A1c’s consistently below 7.
2. If juvenile age of onset, current age above 30 and A1c’s consistently below 7 (last 5 years).
3. No hospitalization for diabetic emergencies or diabetes related complications.
4. Compliance with doctor recommended testing, both at home and quarterly blood workups.
5. No onset of diabetes related complications.
It all comes down to the same factors that lead most underwriting, compliance and control. If someone is doing their best to comply with testing and treatment and because of that they are staying well controlled and healthy, underwriters understand that the mortality risk is lower, often meaning the difference between insurability and being declined, or the difference between high rates and affordable rates.
Bottom line. There is good news in the life insurance world of underwriting senior life insurance and diabetes of both types. We just delivered a $2.5 million dollar policy to and physician client with type 1 diabetes today. After several failed attempts through other agencies she finally has the family protection of income replacement that she needed.