Term Life Insurance for Diabetics: What are the Options?

A few years back people suffering from diabetes had options available in the form of Boston Mutual, Fidelity Security, or Oxford Life. These were some of the insurance companies that were willing to insure people suffering from diseases like diabetes. As per state and federal laws, insurance companies have been instructed to provide term life insurance for diabetics.

John Stokes, 53, from Boston MA, was diagnosed with diabetes and during his search for term coverage he gained a considerable amount of information on how companies deal with people suffering from diabetes. Here is a brief detail as to the hardship he went through in his search for term life insurance for diabetics. It can also be helpful to insurance advisers who wish to learn the problems faced by people looking for coverage and who really wish to provide genuine help.

As one goes through this, one will learn how difficult it is for someone with diabetes to get insurance. Clients and agents who have the nerves to handle few rejections, it is quite sure they will taste success sooner or later. As per WebMD, one in every three American children will suffer from diabetes during their lifetime. This could justifiably be referred to as epidemic proportions.

What is the game plan for term life insurance for diabetics?

The plan is we begin from the top and work our way down in the chain. Applying with several insurance companies in a given time and wait for the best offer that comes at your door step. Since not every diabetic should not apply for the better carriers in the market, so the relativity should be at the top, many people can begin by enrolling in sub standard disability plan like the ones provided by Fidelity Security. The level of term life insurance for diabetics depends on the following factors:

1. One of the best options is to enrol in a non-cancellable policy that also has the feature of being guaranteed renewable. An insurance plan provided to you, which has a rating of fifty percent or below can be a beneficial offer from the insurance company. If you are able to get residual disability benefit from the insurance company than you are in a win-win situation.
2. One should not expect any further riders to supplement their policy, like AIR, COLA or future increase options. There are very limited options available to people who are above the age of 65 and are looking for term life insurance for diabetics.
3. A two year or five year benefit period with the feature of non-cancellation. A rating of fifty to hundred percent should be viewed as a beneficial option from the insurer. As per advise from experts, people who are offered a benefit period of two years, should ask the insurance company for an elimination period of thirty days.
4. People who are unable to get coverage under term life insurance for diabetics from a reputed organization; they should try their hand at some of the companies that provide middle of the road contract. There are insurers who provide insurance for long term disability with some restrictions; therefore they can afford to take little more risk in the underwriting process. In such types of plans a person can probably not see certain benefits towards own occupation. These plans normally carry a nervous or mental restriction. At this level, a person looking for term life insurance for diabetics at the age of 65 can get much more benefits.
5. Another alternative is in the form of sub standard plans from one of the insurance providers. This type of policy offers a total monthly benefit similar to other policies. People who apply for claim in the first year of such plans will get 33% of the benefit. For claims filed in the second year of the policy, one can get 66% of the benefits. From third year onwards one can get the entire amount of the assured benefits.

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