Insurance Blog

Disability Insurance and Diabetes

If you have diabetes then chances are that you know how hard it is to obtain decent insurance. You may think that because most types of insurance are so hard to obtain because of the disease that obtaining long-term insurance will be impossible. While it is no easy task, it is not impossible and if you work with the right insurance agent and are ready for a handful of rejections you can find good solid disability insurance.

Diabetes can strike anybody. Many people think that diabetes is reserved for those over 40 and overweight but that is merely a stereotype and an inaccurate one at that. Anyone from children to seniors can get diabetes regardless of their age, health, or weight.

When it does come time for you to begin to shop for disability insurance you should plan to start at the top. This does not mean to apply for coverage with several companies at one time and then wait to see who offers you the best price, but rather taking the top company and seeing what they have to say before you go any further. If they say no then go one step down and so on.

Here are the levels you can expect to obtain if you are a diabetic:

• Acceptable: The bottom of the barrel is a sub-standard insurance policy which will have a total monthly benefit just as any other policy would. The definition of total disability will be gainful occupation which will mean that in the first year of your disability you will only get 33 percent of the total benefit and the 66 percent for the second year and finally the total benefit in the third year. While not the best, it is still better than nothing.
  
• Good: A good middle of the road contract with a middle of the road provider is the next rung up the ladder and will include many provisions and definitions that will make it a bit more restrictive that the top options. You will not likely see own-occupation benefits, and you will more than likely be restricted on mental disability but it is still a viable plan. At this level a diabetic with control over the disease should be looking for coverage until age 55.
  
• Better: If you can get it, a five or two year benefit period with a non-cancelation policy is a wonderful plan. Ratings of 50 to 100 percent should be viewed as a good offer from the insurance company. If you can get this type of coverage you will want to see if you can get 30 day elimination period as well.
  
• Best: The best and hardest to get for a diabetic will be a ‘to age 65' or a 5 year benefit policy with a non-cancelation and guaranteed renewable policy. Any policy issued to you with a rating of 50 percent or under and that offers residual benefits is a great policy to have and means that you have done well in your quest to obtain disability insurance.

The type of policy that you will be able to obtain will of course depend on your particular circumstances and how well you control your diabetes. In any case there will be many riders such as future add-ons that you will probably never be able to obtain, but it never hurts to ask if that is your desire.

When it comes to the control of your diabetes you will have to prove to most providers that it is as well controlled as you say. This can be done with the Hemoglobin A1C blood test which will give the provider an idea of your average blood glucose levels for the past three months. Most providers will administer this test during your time of application and they will also require a track record from your doctor of your HA1C results over the past year. If your average for the past year and beyond is below 6.2 then you are on good shape and will probably receive a solid offer.

There will be many other factors that are considered and if you are overweight, a smoker, received your diagnosis before the age of 28, or you are now older then you can expect a good number of rejections. You have to remember that the insurance company is going to weigh all the factors together before they make a decision on whether or not to offer you disability coverage. If you have more factors that hurt your chances other then just diabetes then it all adds up to a harder time of finding coverage.

You can still obtain disability coverage even if you have diabetes, especially if you have it under control. Start at the top and keep going down one step at a time until you get what you are after. Just don't expect to get an offer right out of the gates and be sure to take your first offer you do receive even if you keep looking because it may end up being the only offer you get. You can always cancel if you find better coverage down the road but at least in the meantime you will have peace of mind.

Nothing is more important than bring in an income. If you become disabled that ability will be gone and will leave you and your family struggling to make ends meet. For that reason it is vital that you have disability coverage. While having diabetes does mean that you will be subject to more than one provision with your disability insurance you can still get it and ensure that you and your family will be taken care of should the unthinkable happen and you are no longer able to work due to a disability.