A diabetic searching for Texas life insurance on the Internet should be aware that the premiums quoted online are meaningless. Insurance carriers will charge more than the online quotes because actuarial studies indicate that diabetes is a chronic condition which increases the carrier’s risk. Using an independent agent to research the most favorable plans is the most practical option. In determining a diabetic’s premium, carriers look at different factors, which can make a significant difference in the amount of premium. Factors that insurance carriers review include the applicant’s height, weight, blood pressure, cholesterol, AIC levels, and Type 1 diabetes compared to Type 2 diabetes.

The following examples provide additional information:

Example Number 1: Inaccuracy of online quotes. A 42-year old diabetic male is looking for a 20-year term life insurance policy with a $500,000 death benefit. If he selected online the company that is showing the lowest preferred premium, he might think the premium would be $440 per year, which is totally inaccurate. To use a better example, a consumer is somewhat familiar with life insurance and decides to research coverage options by the selecting standard rate instead of the preferred rate. The diabetic consumer believed that the standard rate would apply even with the diabetic condition. The final premium assigned the policy is $884 a year, which is significantly higher than the standard rate. Both examples show that an informed agent should be consulted regarding premiums for diabetics. Texas life insurance premiums will be assigned depending on a company’s tolerance for the financial risk associated with the diabetic condition.

Example number 2: What options can be pursued? Jim, who is a healthy 57-year-old-male, called his local car insurance agent and was quoted a rate of $290 per month on a 30-year term insurance policy with a death benefit of $500,000. When enrollment was completed, underwriting had assigned a premium of over $900 per month. The carrier assessed this level of rate-up because Jim had elevated blood sugar and had cholesterol readings slightly higher than average. The rate-up was charged even though Jim had never been diagnosed with diabetes (he was always borderline) and had cholesterol readings only slightly above average. Jim had submitted his application to only one insurance company, which very tight requirements on cholesterol and diabetes. The better option would have been to identify a life insurance carrier that was more tolerant of AIC levels and did not penalize the premium for the slightly raised cholesterol readings. The premiums could also have been affected with a change in Jim’s diet and closely monitored AIC levels for six months in order to qualify for a lower life insurance premium.

So what are the simple steps to take before submitting a life insurance application? First, an individual should visit with a physician and take a basic assessment of height, weight, blood pressure, cholesterol readings and blood sugar readings. Readings that are above normal should be identified and a program that will positively affect the results should be started. The goal is to get the condition under control, because even if the individual is diagnosed as a diabetic by the physician and has to pay more for insurance, the premium will be much less with readings under control. Secondly, if the individual is a borderline diabetic or has been diagnosed as a Type 2 diabetic, a lower premium will apply if the condition can be controlled with diet and exercise. If the applicant is not willing to go through the steps necessary to reduce premium, a guaranteed issued policy that does not require an exam is always an option. Those premiums will be higher than the example with Jim but lower than securing a policy that requires a physical with results showing unmanaged numbers. The drawback with guaranteed issue coverage is that an age limit and/or a dollar limit may apply.

An applicant with diabetes or other significant health conditions should consult with a licensed agent to identify the best opportunity for coverage.

Tim Jarvis is a licensed and experienced Texas life insurance agent who focuses on educating his fellow Texans on the best way to shop and quote Texas life insurance coverage