Life Insurance for People with Diabetes UK

Living with diabetes in the UK means managing a long-term health condition, but it should never mean putting your financial security on the back burner. A common question we hear is, "Can I still get life insurance if I have diabetes?" The answer is a resounding yes.

While having diabetes does add a layer of complexity to your application, the UK insurance market has evolved significantly. Insurers are more knowledgeable about the condition than ever before, and for the vast majority of people with well-managed diabetes, securing affordable and comprehensive protection for their family, mortgage, or business is entirely achievable.

According to Diabetes UK, there are over 5 million people living with diabetes in the UK, a number that has more than doubled in the last 15 years. This means insurers are very familiar with applicants who have the condition. They understand that with proactive management, many people with diabetes live long, healthy lives.

This guide will walk you through everything you need to know about getting life insurance, critical illness cover, and income protection with both type 1 and type 2 diabetes. We’ll explore how insurers assess your application, the different types of cover available, and the practical steps you can take to get the best possible terms.

Exploring Cover Options for Type 1 and Type 2 Diabetes

When you apply for life insurance, underwriters don't just see the word 'diabetes'; they look at the complete picture of your health. A crucial starting point for them is whether you have type 1 or type 2 diabetes, as they view the risks associated with each quite differently.

Life Insurance with Type 1 Diabetes

Type 1 diabetes is an autoimmune condition where the body cannot produce insulin. It's typically diagnosed in childhood or early adulthood and requires lifelong insulin therapy.

From an insurer's perspective, the key considerations for type 1 diabetes are:

• Age at Diagnosis: An earlier diagnosis means a longer duration of the condition, which statistically increases the long-term risk of complications.
• Level of Control: This is the most critical factor. Insurers will want to see a consistent history of good blood glucose management, primarily measured by your HbA1c readings.
• Complications: They will check for any existing diabetes-related complications, such as retinopathy (eye problems), neuropathy (nerve damage), or nephropathy (kidney issues).
• Overall Health: Factors like your Body Mass Index (BMI), blood pressure, cholesterol levels, and smoking status are just as important.

Because type 1 diabetes is present from a younger age, insurers can be more cautious. However, an applicant with well-managed type 1 diabetes, a stable HbA1c, and no complications has a very strong chance of securing cover, albeit with an increased premium (known as a 'loading').

Life Insurance with Type 2 Diabetes

Type 2 diabetes is a condition where the body either doesn't produce enough insulin or the body's cells don't react to insulin properly. It accounts for around 90% of all diabetes cases in the UK and is often linked to lifestyle factors, typically developing later in life.

Insurers often view well-managed type 2 diabetes more favourably than type 1, especially if it's controlled by diet and exercise alone.

The key factors for type 2 diabetes are:

• Method of Control: Is your diabetes managed through diet, tablets (like Metformin), or insulin? Diet-controlled diabetes is seen as the lowest risk, while insulin-controlled is seen as higher risk.
• HbA1c Readings: As with type 1, this is a vital measure of your long-term control.
• Time Since Diagnosis: A more recent diagnosis, especially if well-controlled, is often viewed positively.
• Associated Conditions: Insurers will pay close attention to your BMI, blood pressure, and cholesterol, as these are often linked to type 2 diabetes and cardiovascular risk.

For many people with type 2 diabetes, particularly those who have made positive lifestyle changes and have their condition under control, life insurance can be surprisingly affordable and may even be offered with only a small premium loading.

Insurer's View: Type 1 vs. Type 2 Diabetes at a Glance

How Insurers Assess a Life Insurance Application from Someone with Diabetes

The insurance application process is designed to help underwriters understand your personal level of risk. With diabetes, this means they need to build a detailed picture of your condition and your overall health. Being prepared for their questions can make the process smoother and faster.

The Key Questions You'll Be Asked

Expect to provide details on the following:

1. Type of Diabetes and Diagnosis Date: Was it type 1 or type 2, and when were you first diagnosed?

2. Your Latest HbA1c Reading: This is a blood test that reflects your average blood glucose levels over the past two to three months. It's the gold standard for measuring diabetes control.

   • What is HbA1c? It's measured in mmol/mol. For most adults with diabetes, a target of 48 mmol/mol (6.5%) or below is recommended by the NHS.

3. Treatment and Management: How do you control your diabetes? (e.g., diet only, Metformin, Gliclazide, insulin injections, insulin pump).
4. Complications: Have you been diagnosed with any of the following?
   • Retinopathy: Damage to the back of the eye.
   • Neuropathy: Nerve damage, often causing numbness or pain in the hands and feet.
   • Nephropathy: Kidney disease or protein in your urine.
   • Any cardiovascular issues like high blood pressure or high cholesterol.
5. Other Lifestyle Factors:
   • Smoking Status: Being a smoker with diabetes significantly increases your risk profile and your premiums.
   • Body Mass Index (BMI): Your height and weight.
   • Alcohol Consumption: Units consumed per week.

Based on your answers, an insurer will make one of three decisions:

• Acceptance at Standard Rates: This is uncommon for diabetes applicants but possible for exceptionally well-managed, diet-controlled type 2 cases.
• Acceptance with a Loading: This is the most common outcome. The insurer offers you cover but increases the standard premium by a percentage (e.g., +50%, +100%, +150%) to reflect the additional risk.
• Decline: This happens if the condition is very poorly controlled, or if there are severe complications. However, a decline from one insurer doesn't mean all will decline.

A Deep Dive into Protection Products for People with Diabetes

Life insurance isn't a one-size-fits-all product. The right type of cover depends entirely on what you want to protect. For someone with diabetes, understanding these options is key to building a robust financial safety net.

Life Insurance

This is the foundation of financial protection. It pays out a tax-free lump sum if you pass away during the policy term.

• Term Life Insurance: This is the most popular and affordable type. You choose the amount of cover and the length of the term (e.g., £200,000 over a 25-year mortgage term). If you die within that term, your family receives the payout. It's ideal for covering mortgages, debts, and providing for your family until your children are financially independent.
• Family Income Benefit: A variation of term insurance. Instead of a single lump sum, it pays out a regular, tax-free monthly or annual income to your family for the remainder of the policy term. This can be easier for managing day-to-day bills and can be a more cost-effective way to secure a high level of protection.
• Whole of Life Assurance: This policy guarantees to pay out whenever you die, as there is no fixed term. Because the payout is certain, premiums are significantly higher. It's most commonly used for covering a future Inheritance Tax (IHT) bill or leaving a guaranteed legacy.
• Gift Inter Vivos Insurance: A specialist type of life insurance policy designed to cover a potential Inheritance Tax liability on a gift you have made. If you die within 7 years of making the gift, the policy pays out to cover the IHT bill, ensuring your beneficiaries receive the full value of the gift.

Critical Illness Cover (CIC)

Critical Illness Cover is designed to pay out a tax-free lump sum if you are diagnosed with a specific serious condition defined in the policy, such as some forms of cancer, heart attack, or stroke.

For people with diabetes, getting CIC can be more challenging and expensive than life insurance. This is because diabetes is a known risk factor for some of the main conditions covered, particularly heart attacks and strokes.

Possible Outcomes for CIC Applications:

1. Accepted: Possible for very well-managed cases, but premiums will be high.
2. Accepted with Exclusions: Some insurers may offer cover but exclude claims related to diabetes (e.g., a heart attack or stroke). You need to weigh up if a policy with such exclusions still offers value.
3. Declined: This is a more common outcome for CIC than for life insurance.

Income Protection (IP)

For many people with diabetes, Income Protection is arguably the most important cover of all. It's designed to replace a portion of your monthly income (typically 50-65%) if you are unable to work due to any illness or injury.

Diabetes can lead to complications or require treatment adjustments that result in extended time off work. Without employer sick pay, this could be financially devastating. Income Protection provides a vital safety net.

• Deferment Period: This is the waiting period from when you stop working until the policy starts paying out. It can range from 4 weeks to 12 months. A longer deferment period means a lower premium. You should aim to align it with any sick pay you receive from your employer.
• Personal Sick Pay: This term is often used to describe shorter-term income protection policies, popular with tradespeople, nurses, and other professionals who may not have generous employer benefits. It provides cover for 1, 2, or 5 years per claim, making it more affordable than a full-term policy.

At WeCovr, we help clients with diabetes navigate these options every day. We understand the nuances of each product and can advise on which combination provides the most effective and affordable protection for your unique circumstances.

Specialist Cover for Business Owners, Directors, and the Self-Employed

If you run your own business or work for yourself, the need for financial protection is even greater. A diagnosis of diabetes adds another layer to consider when planning for your business's future and your own financial stability.

For the Self-Employed and Freelancers

When you're self-employed, there's no safety net. You have no employer sick pay and no death-in-service benefits. This makes Income Protection an absolute necessity. It acts as your personal sick pay scheme, ensuring your essential bills are paid if your health prevents you from working.

For a freelancer with well-managed type 2 diabetes, a good income protection policy is often readily available and provides peace of mind that a period of illness won't derail their finances.

For Company Directors and Business Owners

Protecting your business is as important as protecting your family. If you have diabetes, it’s wise to consider how your health could impact the company you’ve built.

• Key Person Insurance: What would happen to your business if you, a key director, were to pass away or become critically ill? Key Person Insurance is a policy taken out and paid for by the business. The payout goes directly to the company to help cover lost profits, recruit a replacement, or clear business debts. For a director with diabetes, this provides crucial stability for the business and reassurance for lenders and investors.
• Executive Income Protection: This is a fantastic option for company directors. The policy is owned and paid for by the business, making it a tax-deductible expense. If the director is unable to work due to illness (including complications from diabetes), the benefit is paid to the company, which then pays it to the director via PAYE. It can offer more generous terms and higher cover levels than personal income protection.
• Relevant Life Cover: This is a tax-efficient alternative to a personal life insurance policy for directors and employees. The business pays the premiums, which are typically an allowable business expense, and there are no P11D benefit-in-kind implications. The payout on death goes into a trust for the director's family, completely separate from the business.

Practical Steps to Secure the Best and Most Affordable Cover

Securing the right protection with diabetes isn't just about filling in forms; it's about proactively managing your health and your application. Here’s how you can improve your chances of getting the best terms.

1. Get Your Health in Order

Insurers reward proactive health management. The more you can demonstrate that you are on top of your condition, the better your outcome will be.

• Know Your Numbers: The single most important piece of data is your HbA1c reading. Work with your GP or diabetes nurse to get this number into the 'excellent' or 'good' range. Keep a record of your readings over time to show stability.
• Control Your Controllables: Focus on blood pressure, cholesterol, and your BMI. Positive changes in these areas will have a direct impact on your premiums.
• Embrace a Healthy Lifestyle: A balanced diet and regular exercise are fundamental to managing diabetes and are viewed very positively by insurers. Small, consistent efforts make a big difference. At WeCovr, we believe in supporting our clients' long-term health, which is why we provide complimentary access to our AI-powered calorie tracking app, CalorieHero, to help you stay on track with your nutritional goals.
• Quit Smoking: If you are a smoker with diabetes, quitting is the single biggest action you can take to reduce your premiums and, more importantly, improve your health. The cost difference between a smoker and a non-smoker can be 50% or more.
• Attend All Your Check-ups: Demonstrating that you attend your annual diabetic eye screening, foot checks, and GP reviews shows underwriters that you are responsible and engaged with your health management.

2. Navigate the Application Process Like a Pro

• Be 100% Honest and Accurate: Never be tempted to omit information or fudge your numbers. Insurers will almost certainly request a report from your GP to verify the details. If you are found to have withheld information (non-disclosure), your policy could be voided at the point of a claim, leaving your family with nothing.
• Gather Your Information in Advance: Before you apply, have the following details to hand:
  • Your diagnosis date.
  • Your latest HbA1c reading (and previous ones if possible).
  • A full list of your medications and dosages.
  • Your current height and weight.
  • Your GP's name and surgery address.
• Don't Rely on Standard Comparison Websites: While great for a rough guide, automated comparison sites cannot handle the complexities of a diabetes application. The initial price you see is for a perfectly healthy person and will not be the final premium you pay. Multiple applications through these sites can also leave a 'footprint' that other insurers can see.
• Use a Specialist Broker: This is the most important step. An expert broker, like our team at WeCovr, works for you, not the insurance company. We know the underwriting philosophies of every major UK insurer. We know which ones are more favourable for type 1, which offer the best terms for well-managed type 2, and which have the most experience with business protection cases. We can present your case in the best possible light and approach the right insurer first time, saving you time, money, and stress.

Real-Life Scenarios: How Premiums Can Vary

To illustrate how insurers assess different profiles, let's look at three fictional but realistic case studies. All are applying for £200,000 of level term life insurance over 25 years.

These examples clearly show that it's the control of your diabetes and your overall health, not just the diagnosis itself, that determines the outcome of your application.

The Role of Medical Evidence in Your Application

For almost all life insurance applications involving diabetes, the insurer will want to get a fuller picture of your medical history directly from the source. This is a standard and crucial part of the process.

Typically, this involves the insurer writing to your GP for a General Practitioner's Report (GPR). You will need to give your consent for this. The report will confirm:

• Your diagnosis details.
• Your history of HbA1c readings.
• Your current and past treatments.
• Any recorded complications.
• Readings for blood pressure and cholesterol.
• Notes on your general health, including lifestyle factors like smoking and alcohol.

In some cases, especially if the cover amount is very high or if recent medical information is limited, the insurer may also request a mini-medical screening. This is usually done by a qualified nurse at your home or workplace at a time convenient for you. It's a quick process, typically involving a blood sample, a urine sample, and measurements of your height, weight, and blood pressure.

This process is nothing to worry about. It ensures the insurer has the most accurate information to offer you the fairest possible price.

What if My Application is Postponed or Declined?

Receiving a postponement or a decline can be disheartening, but it's important not to give up.

• Postponement: This is not a 'no'. It's a 'not right now'. An insurer might postpone a decision for 3 to 12 months if:

  • You have been very recently diagnosed.
  • You have recently changed medication (e.g., started insulin).
  • Your HbA1c readings have been unstable. They simply want to see a period of stability and good control before they offer terms. You can re-apply after the specified period.

• Decline: While more definitive, a decline is not the end of the road. Every insurer has its own set of underwriting rules (their 'risk appetite'). An insurer who declines you might be very cautious, while another may be a specialist in insuring people with more complex health profiles. This is where an expert broker is invaluable. If one insurer says no, we know who to approach next.

In the rare event that standard cover isn't available, there are still other options to consider, such as Guaranteed Acceptance Life Insurance. These policies ask no medical questions, so acceptance is guaranteed for UK residents within a certain age bracket (e.g., 50-80). However, they typically have lower cover amounts and higher premiums per pound of cover, and often include a 12-24 month waiting period before they will pay out for death by natural causes.

Living with diabetes requires diligence and a proactive approach to your health. Applying for life insurance is no different. By understanding the process, taking control of your health, and seeking expert advice, you can successfully put a robust financial plan in place, giving you and your loved ones the peace of mind you deserve.

Frequently Asked Questions (FAQs)