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It is commonly believed that those living with conditions like type 1 diabetes will have difficulty securing quality life insurance plans. This is a very common misunderstanding. Certain comprehensive life insurance policies may exclude those with some conditions; however, with the help of specialist policies, it is entirely possible for type 1 diabetics to obtain life insurance.
Many life insurance providers have what is called a critical illness plan. The most common question is whether type 1 diabetes falls under this classification.
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Is type 1 diabetes a critical illness?
It’s important to begin by saying that all providers are different, and have different terms and conditions. For the most part, providers do not classify type 1 diabetes as a critical illness. Furthermore, critical illness cover and life insurance are not the same.
Critical illness cover is a policy taken out which pays a lump sum if you are diagnosed with a certain condition or if you suffer a health condition such as a heart attack or a stroke. They are often taken out on top of life insurance policies, but they are separate.
They are often taken out on top of life insurance policies, but they are separate.
Now, type 1 diabetes, in itself, is not a critical condition defined under the most widespread terms. However, type 1 diabetes does increase your risk of suffering critical illnesses such as heart attacks and strokes. For that reason, as a sufferer of type 1 diabetes, your premiums are likely to be somewhat higher. But there is nothing about your condition which means you will not be able to access quality life insurance policies.
Type 2 diabetes
It is just worth mentioning, also, that the same is usually true of type 2 diabetes. Certainly, whatever the case, a type 2 diabetic will be able to access life insurance as easily as a type 1 diabetic. Type 2 is not considered a critical illness.
Type 2 diabetes is in a broad sense more manageable for most that suffer from it, and so as long as your medical assessment deems you to be leading a healthy lifestyle, your premiums should not be affected too greatly.
Living with diabetes of either kind is never easy, but rest assured that life insurance policies are not out there to make it harder.
Accessing life insurance with type 1 diabetes
We compare plans from the leading life insurance providers
Term life insurance
There are several basic forms of life insurance policies which you may look for as a sufferer of type 1 diabetes. The most common kind is known as term life insurance, which makes a payment during the course of a specified term. If you pass away during the term of the policy, your loved ones will receive the pay-out.
Securing term life insurance as a sufferer of type 1 diabetes is entirely possible, though the likelihood is your condition will raise your premiums. Medical information provided at the point of application will assess this.
Term life insurance policies can be taken out on either a level term or a decreasing term. Level term maintains the same pay-out over its whole lifetime. Decreasing term pay-outs diminish over time. They both serve different purposes, but the main question you should ask is what would need to be provided for if you were no longer around.
Though your type 1 diabetes may increase the premiums, a term life insurance policy is still a good choice.
Whole of life insurance
Whole of life insurance is the most comprehensive kind of life insurance cover. Once you start the policy you will continue paying it until you cancel it or you pass away. It provides a guaranteed pay-out for your loved ones.
Naturally, these sorts of policies are already among the more expensive kinds of cover. On top of that, your premiums will be further raised due to your condition. You will again need to pass a medical evaluation during the application process to determine the risk you pose and the premiums you’ll need to pay.
Whole of life insurance is not the best option for someone suffering from type 1 diabetes.
Over 50s plan
For residents of the U.K. aged 50-85 and suffering from type 1 diabetes, the over 50s life insurance makes a very fitting option. These policies do not require medical evaluations during the process of application, meaning that your type 1 diabetes will not affect your premiums.
These types of policies are somewhat limited, as a result of the lower premiums. You cannot usually take out cover greater in value than £25,000, so you’ll have to decide if an over 50s plan will be able to cover your needs.
There may also be a waiting period on the start of your policy of up to two years. During those initial two years, you will begin paying your monthly premiums, but if you pass away of natural causes during this initial waiting period, no pay-out will be made and any premiums paid will be refunded.
An over 50s plan certainly provides a good level of cover and is not affected by conditions like type 1 diabetes. But when choosing your policy, you will need to have a clear idea of what would need to be provided for once you are gone.
Choosing your plan
Life insurance does not have to be overly complicated, but in today’s world the truth is that it’s very easy to become overwhelmed with options. The first thing to do is make a clear assessment of all your needs. The most common use for life insurance pay-outs is to cover the cost of mortgages, and for funeral expenses, or inheritances.
Once you’ve identified your own needs, there are plenty of ways to compare life insurance providers. Sites such as comparethemarket.com, or comparecoveruk.com will pull information on many different policies and tell you which is the most suitable for you.
You can specify cover for a sufferer of type 1 diabetes, or you can find a provider that seems to fit all your needs and contact them directly to discuss how your condition will affect your premiums. Ultimately, help is out there, and you are not alone.