Insurance Underwriting
Life Insurance Underwriting For Diabetics
and Life insurance Information
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insurance underwriters
The idea of Life Insurance underwriting is what determines the cost of your policy. If might even determine if you will even be able to purchase life insurance at all. In the insurance industry, the term underwriting refers to the process of evaluating risk. The underlying principle of insurance is the transfer of risk. What makes this possible is that the Insurance Company is going to assume the risks for a large number of individuals.
Since the large number of individuals will be paying premiums, there will be funds available to pay claims and still allow the Insurance Company to pay its expenses and make a reasonable profit. Life Insurance underwriting is the evaluation of such factors as health and life expectancy. Life Insurance underwriting is usually done on an individual basis. Individual health, age, life style, and even gender will all be considered. The idea will be to assign a certain risk factor to the individual and use this risk factor to determine the amount of money that needs to be charged for the Insurance Policy in order to make the assumption of risk acceptable.Insurance Companies vary in their underwriting poli
Life Insurance Companies differ in their “underwriting philosophy” when it comes to diabetes. Offering life insurance for diabetics can be risky if the underwriters are not fully trained. This type of life insurance is called “guaranteed issue life insurance“.Guaranteed issue life insurance for diabetics is more expensive than regular (fully underwritten) life insurance and is only sold as “whole life insurance“. Fully Underwritten policies take the client’s full medical records into account.
If the insurance company decides to insure this applicant, it is after the company’s underwriters look at the case. If the client is fully underwritten and passes through underwriting, then they would have more options than just whole life insurance (in the case of those who are in need of guaranteed issue whole life insurance). Term insurance, Universal Life Insurance, Survivorship Universal Life Insurance, and regular Whole Life Insurance would be available to these applicants that are fully underwritten.
When evaluating a client with diabetes, the underwriters at the insurance company take into account whether the client is a type one diabetic (type I diabetic, type 1 diabetic, type 1 diabetes, type I diabetes) or a type two diabetic (type II diabetic, type 2 diabetic, type 2 diabetes, type II diabetes). If the client’s A1C level is below 8, then fully underwritten life insurance may be available subject to the client’s full medical file. If the client’s A1C level is above 8, then guaranteed issue life insurance is a more realistic goal.An insulin pump is actually a positive factor where life insurance underwriting is concerned because the client’s insulin level is kept at a constant level.Is the client controlling the diabetes with “diet and excercise”? So what kind of companies will accept clients with diabetes?
A recent article from the Hilton Head Health Institute stated, “The evidence is growing that diabetes – especially “late onset” type 2 diabetes – is becoming an epidemic. Diabetics now make up a large percentage of our client base and the number of people diagnosed as diabetic or pre or borderline diabetic on life insurance exams has sky rocketed. Those diabetics who do take the situation seriously, educating themselves, monitoring their diabetes and taking control of other risk factors such as hypertension and obesity, can ultimately lead a long, healthy life. Blood glucose binds to the hemoglobin through a process called glycosylation. The higher the blood sugar the more the glucose binds to the hemoglobin. What are the complications of type 2 diabetes? What really worries life insurance underwriters? This list came from the American Diabetes Association website. www.diabetes.org:
*Heart Disease and Stroke , *Kidney Disease , *Eye Complications , *Diabetic Neuropathy and Nerve Damage, *Foot Complications, *Skin Complications, *Gastroparesis and Diabetes, *Depression
Life seems hopeless. Ultimately there is good news for type 2 diabetics working to acquire life insurance. Type 1 diabetes Type 1 diabetes, often called juvenile diabetes, is different from type 2 diabetes but often has many of the same complications. While type 2 diabetes is occurs when a person has too little natural insulin or his or her body is not able to use the insulin `effectively, type 1 diabetes is the absence of insulin altogether. From www.ehealthmd.com we get this take on the cause of type 1 diabetes. “Diabetes is an autoimmune disease. There is an often-misunderstood relationship between diet and diabetes. Furthermore, having diabetes doesn’t mean you have to eat only bland, boring foods.
The long-term affects of mismanaged type 1 diabetes are at best damaging and at worst deadly. It should be no wonder that life insurance underwriters pay special attention to the type of compliance you keep with your doctor and dietician and the type of control you have achieved and maintained with your glucose levels.Again, you will not impress a life insurance underwriter, or for that matter, a life insurance agent who is knowledgeable about diabetes by telling them your most recent glucose reading was 98.
That may be control, but it might also be a well-timed glucose check. CONTROL! “Long term complications include – Heart and blood vessel (cardiovascular) disease – Nerve damage (neuropathy) – Kidney damage (nephropathy) – Eye damage (diabetic retinopathy) – Osteoporosis and several skin conditions.” “Short term complications such as low blood sugar (hypoglycemia), high blood sugar (hyperglycemia) and a high level of ketones in your urine (diabetic ketoacidosis), require immediate care. Diabetes does not preclude getting life insurance at competitive and good rates. Poorly controlled diabetes, for abundantly obvious reasons, may very well make life insurance expensive and even unattainable.
Writer: Brillyan a.s
You may want to check out my other guide on insurance comparison and low cost insurance
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