Purchasing life insurance when you have a pre-existing medical condition, especially a chronic medical condition like diabetes, can be a serious challenge. While some individuals with well-managed diabetes are able to purchase superior permanent life insurance policies – albeit at a higher premium – many diabetics, especially those whose condition is difficult to control or doesn’t respond to treatment as desired, get turned down or must consider alternative methods for obtaining life insurance coverage. Term life insurance for diabetics can be an affordable alternative to traditional permanent life insurance policies
Term life insurance policies offer lower premiums for individuals with diabetes who cannot afford or cannot get approved for whole life insurance coverage. It is important to weigh the risks and benefits of each type of life insurance prior to purchasing as each has their respective pros and cons.
What is Term Life Insurance?
Term life insurance is life insurance that is secured for a specific period of time. Should the policy holder pass within the time period that the term life insurance policy was active, death benefits would be paid to the beneficiary. However, if the term expires, the coverage is void and no payout will be available upon the death of the policy holder.
Common terms of coverage are often secured for 10, 15, or 20 years (duration of terms vary based on your needs). As is with any insurance premium, you pay a monthly premium. Term life insurance policies tend to have much lower premiums as opposed to permanent life insurance, making term life insurance a more affordable choice for diabetics.
The downfall to term life insurance is that there is no guarantee that you will be able to obtain a new policy when the term expires, leaving your death benefit payout dependent on your ability to obtain a new policy if you do not pass within the term of your policy.
What Term Life is Not
Term life insurance then, is not a form of permanent or whole life insurance. Whole life insurance policies provide life insurance coverage for the entire duration of the policy holder’s life as long as the premiums are paid in full. Whole life insurance policies also boast the benefit of accumulating cash value – a benefit not present with term life policies.
While whole life insurance policies are highly desirable for their duration of coverage and extensive benefits, monthly premiums associated with whole life policies are much higher than premiums associated with term life policies.
For diabetics, already high premiums will be even greater, making whole life policies difficult to attain for diabetics on a limited income. Both term life insurance and whole life insurance typically retain a locked-in premium rate for the duration that the policy remains paid.
It is important to consider all of your options, as well as the pros and cons associated with the policy you plan to pursue. Each type of life insurance has benefits and risks.
Discuss your needs with an independent life insurance agent to assess the extent of coverage you need.