Life Insurance for Diabetics UK

Navigating the world of life insurance can feel complex at the best of times. Add a pre-existing medical condition like diabetes into the mix, and it’s easy to feel overwhelmed, uncertain, or even assume that comprehensive cover is out of reach. But this couldn't be further from the truth.

In the UK today, more than 5 million people are living with diabetes, a figure that has more than doubled in the last 15 years. With this growing prevalence, UK insurers have become increasingly sophisticated in their understanding and assessment of the condition. It is entirely possible to secure affordable, robust life insurance, critical illness cover, and income protection with diabetes.

The key is understanding how insurers view the condition, what steps you can take to present your application in the best possible light, and the importance of specialist advice. This guide will walk you through everything you need to know, providing clarity on tailored cover options, pricing, and the underwriting process, so you can protect your family and your finances with confidence.

Tailored Cover Options and What to Expect on Price and Underwriting

When you apply for life insurance with diabetes, insurers undertake a process called 'underwriting'. This is their way of assessing the level of risk you present. For a person with diabetes, they aren't just looking at the diagnosis itself; they are building a complete picture of your overall health and, crucially, how well your diabetes is managed.

The outcome of this underwriting process determines whether you'll be accepted, what type of cover you can get, and how much your premiums will be.

The Key Questions Insurers Will Ask

Be prepared to provide detailed information about your diabetes and general health. The more information you can provide, the more accurately an insurer can assess you. Honesty and accuracy are vital.

Here’s what you can expect to be asked:

1. Type of Diabetes: Is it Type 1, Type 2, or a history of Gestational Diabetes?
2. Date of Diagnosis: How old were you when you were diagnosed, and how long have you been living with the condition? A more recent diagnosis of Type 2 in later life is often viewed more favourably than a Type 1 diagnosis in childhood.
3. Your Latest HbA1c Reading: This is arguably the most important factor. The HbA1c test measures your average blood glucose levels over the past 2-3 months. It gives a clear indication of your long-term control.
4. Height and Weight: To calculate your Body Mass Index (BMI). A higher BMI can increase risk, especially with Type 2 diabetes.
5. Treatment and Medication: Are you controlling your diabetes through diet, tablets (e.g., Metformin), or insulin? If you use insulin, they will want to know the type and dosage.
6. Diabetes-Related Complications: Have you experienced any issues such as retinopathy (eye damage), neuropathy (nerve damage), nephropathy (kidney damage), or any cardiovascular problems?
7. Other Medical Readings: What are your latest blood pressure and cholesterol levels?
8. Lifestyle Factors: Do you smoke? What is your weekly alcohol consumption? Smoking has a significant negative impact on an application from a diabetic.

Understanding HbA1c and its Impact on Premiums

Your HbA1c reading is a number that represents your blood sugar control. Insurers use it as a primary benchmark. While target ranges can vary slightly, here’s a general guide to how insurers might interpret your readings.

What is a "Premium Loading"?

A loading (or 'rating') is an increase on the standard premium price to reflect the higher risk. For example, if the standard monthly premium for a non-diabetic is £20, a "+100%" loading would mean your premium would be £40 per month. A specialist broker like WeCovr can help you find the insurer that will apply the lowest loading for your specific circumstances.

Types of Protection Insurance Available for Diabetics

While some types of cover are easier to obtain than others, a full suite of protection products is potentially available to you. Let's explore the main options.

Life Insurance

This is the most straightforward type of cover to secure with diabetes. A life insurance policy pays out a tax-free lump sum if you pass away during the policy term. This money can be used by your loved ones to pay off a mortgage, cover funeral costs, or replace your lost income.

• Level Term Insurance: The payout amount remains the same throughout the policy. Ideal for covering an interest-only mortgage or providing a set inheritance for your family.
• Decreasing Term Insurance: The payout amount reduces over time, usually in line with a repayment mortgage. This makes it a more affordable option.

For most people with well-managed Type 1 or Type 2 diabetes, obtaining term life insurance is highly achievable, though a premium loading is to be expected.

Critical Illness Cover (CIC)

Critical Illness Cover pays out a tax-free lump sum if you are diagnosed with one of a list of specific serious conditions, such as some forms of cancer, heart attack, or stroke.

This is often more difficult and more expensive to secure for someone with diabetes. This is because diabetes is known to increase the statistical risk of developing certain conditions covered by the policy, particularly heart attack, stroke, and kidney failure.

Possible underwriting outcomes for CIC include:

1. Accepted with a Loading: You get the cover, but at a higher premium.
2. Accepted with Exclusions: You get the cover, but certain conditions directly related to diabetic complications (e.g., heart attack, stroke) might be excluded. This can reduce the value of the policy, so it must be carefully considered.
3. Declined: In cases of poor control or existing complications, insurers may decline to offer CIC.

Navigating the CIC market is where an expert broker becomes invaluable. We at WeCovr have deep knowledge of which insurers have a more favourable view of diabetes and can often find comprehensive cover where others can't.

Income Protection (IP)

Income Protection is designed to replace a portion of your monthly income if you're unable to work due to illness or injury. It pays out a regular tax-free salary until you can return to work, reach retirement age, or the policy term ends.

For anyone who relies on their salary – especially the self-employed, freelancers, and company directors – IP is arguably the most important insurance policy you can own.

Similar to CIC, underwriting for IP can be strict for diabetics. Insurers will be concerned about the increased likelihood of you needing time off work due to your condition or related complications. Expect premium loadings and potentially a longer 'deferred period' (the time between you stopping work and the policy starting to pay out).

• Personal Sick Pay: This is another name for short-term income protection, often favoured by those in manual trades (electricians, builders, plumbers) or roles like nursing. These policies typically pay out for 1, 2, or 5 years per claim, making them more affordable than full-term IP.

Family Income Benefit (FIB)

This is a variation of term life insurance. Instead of paying a single lump sum on death, Family Income Benefit pays out a regular, tax-free monthly or annual income to your family for the remainder of the policy term.

FIB can be a fantastic, budget-friendly option for diabetics. Because the total potential payout decreases over time, the premiums are often significantly lower than for an equivalent level term policy. This can make it an excellent way to secure meaningful protection for your family without stretching your budget.

The Impact of Diabetes Management on Your Application

The single most important message is this: the better you manage your diabetes, the better your insurance outcome will be. Insurers reward proactive health management. Taking control of your health not only improves your quality of life but can also save you thousands of pounds in premiums over the life of a policy.

The Crucial Role of Your HbA1c Reading

As we've seen, this is the gold standard measurement for insurers. A history of stable, healthy HbA1c readings is the best evidence you can present of good control.

• Aim for Stability: An insurer would rather see a stable reading of 55 mmol/mol over the last two years than a reading that has fluctuated between 45 and 70. Stability demonstrates consistent management.
• Show Improvement: If your readings were high in the past but you have actively worked to bring them down, this is viewed very positively. It shows you are engaged with your health.

If your recent readings are high, it may be wise to postpone your application for 6-12 months while you work with your GP or diabetes team to improve your control.

Associated Health Conditions

Diabetes is often linked with other conditions, which insurers will also assess.

• High Blood Pressure (Hypertension): Very common alongside diabetes. If you have it, insurers want to see that it's well-managed with medication and that your readings are within a normal range.
• High Cholesterol: Also common. As with blood pressure, evidence of management with statins or other treatments is key.
• Body Mass Index (BMI): Insurers have specific BMI ranges they consider healthy. For someone with diabetes, particularly Type 2, a high BMI will lead to a higher premium loading.

Actively managing these associated factors is just as important as managing your blood sugar levels. As part of our commitment to our clients' long-term health, WeCovr provides complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. This can be a valuable tool for helping you manage your weight and diet, which in turn can have a positive impact on your HbA1c, blood pressure, and cholesterol.

The Smoking Penalty

For an applicant with diabetes, being a smoker or a recent ex-smoker is the biggest red flag. The combination of smoking and diabetes dramatically increases the risk of cardiovascular disease (heart attack, stroke) and other complications. This will, at best, lead to prohibitively expensive premiums and, in many cases, will result in an outright decline for most types of cover. If you have diabetes and you smoke, quitting is the single most effective step you can take to improve both your health and your eligibility for insurance.

Specialist Cover for Business Owners & the Self-Employed

If you run your own business or work for yourself, your health is your most critical asset. A diagnosis of diabetes can bring the financial vulnerability of your business into sharp focus. Fortunately, there are tax-efficient insurance solutions designed specifically for you.

Key Person Insurance

What would happen to your business if you, or another vital member of your team, were to pass away or become seriously ill? Key Person Insurance is a policy taken out and paid for by the business on the life of a crucial employee.

If that person dies or is diagnosed with a critical illness (if included), the policy pays a lump sum to the business. This money can be used to:

• Recruit a replacement.
• Cover lost profits during the transition.
• Reassure lenders and investors.
• Clear business debts.

The underwriting process is based on the health of the individual 'key person'. So, if a director with diabetes is the key person, all the assessment criteria we've discussed will apply to them.

Relevant Life Insurance

This is a highly tax-efficient way for directors of limited companies to arrange their own personal life insurance. It works like a 'death-in-service' benefit that a large corporation might offer.

• The company pays the premiums.
• These premiums are typically treated as an allowable business expense, reducing your corporation tax bill.
• It does not count as a 'benefit-in-kind', so there is no extra income tax for the director.
• The policy must be written into a trust, ensuring the payout goes directly to the director's family, bypassing both the business and inheritance tax.

For a director with diabetes, a Relevant Life Policy can be a much more cost-effective way of securing cover than a personal policy paid from post-tax income.

Executive Income Protection

This is simply an Income Protection policy that is owned and paid for by your limited company, for your benefit as an employee/director.

Like Relevant Life cover, the premiums are usually an allowable business expense. The benefit is paid to the company, which then typically distributes it to the director via the PAYE system, providing a replacement income stream if you're unable to work due to your diabetes or any other illness or injury.

The Application Process: A Step-by-Step Guide

Understanding the journey from enquiry to active policy can help demystify the process and reduce anxiety.

Step 1: Speak to a Specialist Advisor This is the most important step. Instead of going directly to an insurer, speak to an expert broker. An advisor at a firm like WeCovr will conduct an initial fact-find, discussing your health, finances, and protection needs without it affecting your 'record'.

Step 2: Pre-underwriting and Market Research This is a key benefit of using a broker. We can take your medical details (anonymously) to the underwriters at multiple insurance companies. They will give us an early indication of the likely terms (e.g., "likely to be +125% loading" or "may add a heart-related exclusion for CIC"). This saves you from making multiple formal applications and getting declined, which can be a red flag for future applications.

Step 3: Completing the Formal Application Once we've identified the most favourable insurer, we will help you complete the full application form. It is a legal requirement that you disclose all information fully and truthfully. Hiding your diabetes or the extent of any complications is considered 'non-disclosure' and could lead to a future claim being rejected, rendering the policy useless.

Step 4: The Insurer's Assessment After receiving your application, the insurer will likely do one or both of the following:

• Request a GP Report (GPR): With your written consent, they will write to your GP for a full report on your medical history, including your diagnosis details, HbA1c history, medications, and any complications.
• Arrange a Nurse Screening: They may ask a nurse to visit you at home or work to take blood and urine samples, and measure your height, weight, and blood pressure. This gives them a current, independent snapshot of your health.

Step 5: The Offer of Terms Once the insurer has all the information, they will issue their final decision. This can be:

• Standard Rates: Accepted at the standard price (very rare for diabetics, but possible for exceptionally well-controlled Type 2).
• Rated (Loaded) Premium: Accepted, but with an increased premium.
• Exclusion(s) Added: Accepted, but with certain conditions excluded from the cover.
• Postponed: Your application is put on hold for a set period (e.g., 6-12 months), with a recommendation to reapply once your health has stabilised or improved.
• Declined: The insurer is unwilling to offer cover at this time.

Step 6: Policy In Force If you are happy with the offered terms, you accept them, your first premium is paid, and your cover begins. Your family and finances are now protected.

Real-World Scenarios: Price Examples

To help you understand how these factors come together, here are some illustrative examples. Please note these are for guidance only; your actual premium will depend entirely on your unique circumstances and the insurer chosen.

All examples are for non-smokers seeking level term life insurance.

These examples clearly show that while premiums are higher than for a non-diabetic, they are often far from unaffordable, especially when the condition is well-managed.

Top Tips for Securing the Best Cover at the Right Price

1. Prioritise Your Health: Your HbA1c reading is your passport to better insurance terms. Work with your healthcare team to manage your blood sugar, blood pressure, cholesterol, and weight.
2. Keep Good Records: When you speak to an advisor, have your recent HbA1c, cholesterol and blood pressure readings, medication details, and date of diagnosis to hand. This allows for a more accurate initial assessment.
3. Don't Apply Blindly: Never just use a price comparison website and apply to the cheapest provider shown. Their standard price does not reflect what you will actually be offered. You may be declined, making future applications harder.
4. Be 100% Honest: Non-disclosure is the biggest mistake you can make. It can invalidate your entire policy, meaning your family gets nothing when they need it most.
5. Use a Specialist Broker: This is the most important tip. An independent broker who specialises in pre-existing conditions (often called an 'impaired lives' specialist) knows the market inside-out. They know which insurer is best for Type 1, who is more lenient on BMI, and who has the most competitive pricing for a specific HbA1c range. This expertise can be the difference between getting affordable cover and being declined.
6. Place Your Policy in Trust: For most life insurance policies, it's highly advisable to place them 'in trust'. This is a simple legal arrangement that ensures the policy payout goes directly to your chosen beneficiaries, avoiding probate delays and potentially mitigating inheritance tax. A good advisor will help you with this for free.

Having diabetes should not be a barrier to securing financial peace of mind. While the process requires more detail and the price may be higher, a robust and affordable policy is achievable for the vast majority of people.

By focusing on managing your health, being prepared with your medical information, and engaging with a specialist advisor, you can successfully navigate the market and put the right protection in place for you and your loved ones.

Sources

• Office for National Statistics (ONS): Mortality, earnings, and household statistics.
• Financial Conduct Authority (FCA): Insurance and consumer protection guidance.
• Association of British Insurers (ABI): Life insurance and protection market publications.
• HMRC: Tax treatment guidance for relevant protection and benefits products.