A new type 2 diabetes diagnosis can leave you with a long list of appointments, tests and questions. If life insurance was already on your to-do list, it may be unclear if you should apply immediately or wait until you understand your treatment better. There is no single timetable that suits everyone. The useful starting point is to establish what you know now and what information an insurer might still need. You may have a mortgage application under way or people who depend on your income. Equally, you may already hold a life policy that started before the diagnosis. Your next step depends partly on which of those situations applies.
First, check if you already have cover
If you are seeking Type 2 Diabetes Life Insurance after a recent diagnosis, look for any personal policy you already own. Check its cover amount, end date and current payment status. MoneyHelper says that a person who develops a medical condition after buying life cover generally does not need to inform the existing insurer unless their policy specifically requires it. Check the wording of your own policy before assuming it needs replacing.
You may also have death-in-service cover through work. Find out what it provides and what happens if you leave your job. Existing protection can affect how much additional cover you need, but it does not mean you should overlook the conditions or assume it will last throughout a mortgage.
Do not cancel old cover because you expect a new policy to be cheaper. A new insurer will assess your current health and age, and the final offer may differ from an early estimate. Keep any existing policy active while you review the options and confirm when new cover would begin.
Gather the results you have, without guessing at the rest
An insurer may ask when you were diagnosed, your latest HbA1c and the treatment recommended so far. It could ask about blood pressure, cholesterol, weight, smoking, other health conditions and any complications. You may know some of these answers from your recent appointment and still be waiting for other results. Say when a measurement is pending instead of supplying a figure from memory.
If your medication has recently changed, explain the current treatment and when it started. Do not leave out an earlier medication because it was used only briefly if the insurer asks about treatment history. If a question refers to a complication you have not been assessed for, ask the adviser or insurer how to answer accurately. It is fine to clarify wording rather than guessing what the insurer means.
Diabetes UK says that people with type 2 diabetes can obtain life insurance, although premiums and decisions vary with individual health and the cover requested. A recent diagnosis alone does not tell you what an insurer will offer. It is reasonable to ask what information an insurer needs now and if a GP report is likely before it can confirm terms.
Be clear about the reason for applying
Work out what you want the policy to achieve. A repayment mortgage may point you towards cover tied to the loan term. Children or a partner who relies on your income may create a need for money beyond the mortgage. Put those amounts alongside any savings and existing policies so that you have a sensible figure to discuss.
If a lender has mentioned life insurance, ask what it actually requires. Buildings insurance is usually a lending condition; life cover is generally a separate decision. You should still consider the financial effect of your death on anyone sharing the loan, but do not buy a policy you do not understand because you think a mortgage application depends on it.
Ask to compare the sum insured and the term as well as the premium. An offer that ends before your mortgage does might not serve its purpose. A low monthly figure may also be based on decreasing cover that would pay less as time passes. Read the illustration and ask for an explanation of any exclusions or changed terms after medical underwriting.
Keep the process separate from your medical care
Your clinician’s advice should guide how you manage diabetes. Do not postpone treatment, alter medication or aim for a particular reading to satisfy an insurance quote. The application should reflect your actual health and care plan. If an insurer requests follow-up information, you can ask how long it expects the decision to take.
Tell the insurer or broker if you later find an error in an answer. Keep copies of the form, correspondence and final offer. Once cover starts, store the policy details somewhere a partner or trusted person can find them. If you are waiting for results or a medical report, confirm directly if you have any cover in the meantime rather than assuming the submitted form provides it.
A recent diagnosis can make an insurance application feel complicated, but it need not turn into a rushed decision. Check existing protection, collect accurate information, define the financial need and compare the terms you are actually offered. Those steps give you a firmer basis for deciding what cover is useful for your household.
About the Author
