What's the Best Type of Insurance for People With Diabetes?

Roughly 38 million Americans have diabetes. About 1.5 million of them are diagnosed every year. If you're one of them, you've probably been told, or assumed, that life insurance is either impossible or prohibitively expensive.

It's neither. But the process is different than it is for someone with perfect A1C levels, and understanding how underwriters think about diabetes is the difference between getting a decent rate and getting raked.

The right product is still term life insurance. The difference is in how you apply.

Type 1 vs. Type 2: Underwriters See These Differently

Type 2 diabetes is far more common and generally rates better, especially if it's controlled with oral medication or diet alone. Plenty of carriers will offer Standard or mild table ratings to a Type 2 diabetic with good A1C numbers, no complications, and a stable treatment history.

Type 1 is tougher. It's an autoimmune condition, it's lifelong, and it requires insulin management. Most carriers will rate Type 1 diabetics at Table 2 to Table 6, depending on age of diagnosis, current control, and whether complications (retinopathy, neuropathy, kidney issues) have developed.

But, and this is the important part, "tougher" doesn't mean "impossible." People with Type 1 diabetes get approved for term life insurance every day. The premiums are higher. The coverage is real.

What Underwriters Actually Look At

Your diabetes diagnosis isn't a single data point. It's a constellation that the underwriter evaluates:

A1C level. This is the big one. Under 7.0 is ideal. Under 7.5 is manageable. Above 8.0 and you're going to see significant rate increases. If your most recent A1C was high, consider getting it down before applying. Six months of improved numbers can meaningfully change your rating.

Age at diagnosis. Earlier diagnosis generally means a longer disease history, which underwriters view as more risk, but it also means you've likely had more time to demonstrate management.

Medication. Diet-controlled Type 2 rates best. Metformin-only rates well. Insulin use, particularly for Type 2, signals more advanced disease progression and usually triggers higher ratings.

Complications. Any diabetic complications (neuropathy, retinopathy, nephropathy, cardiovascular events) significantly increase the rating. If you have none, that works strongly in your favor.

Overall health. BMI, blood pressure, cholesterol, smoking status. These matter for everyone, but they compound with diabetes. A diabetic who's also obese and smokes is a very different risk than a diabetic who's fit and doesn't smoke.

DIME Doesn't Have a Diabetes Adjustment

Your family's financial needs don't decrease because you have a chronic condition. If anything, the need increases. Diabetes is expensive to manage, and your medical expenses are higher than average, which means your income is doing more work.

D. Debt. All of it, including any medical debt from diabetes management. Test strips, CGMs, specialist visits, and insulin add up even with insurance.

I. Income. Ten to fifteen years of income replacement. Same formula.

M. Mortgage. Same.

E. Education. Same.

Run the DIME number. Then work backward from what you can afford in premiums to get as close to that number as possible.

The Carrier Shopping Problem

This is where people with diabetes get burned the most. They apply to one carrier, often a name brand they saw on TV, get a Table 4 rating or worse, and either accept it or give up.

Don't do either.

Diabetes underwriting varies wildly between carriers. One company's Table 4 is another company's Table 2. Some carriers specialize in impaired-risk underwriting and are dramatically more competitive for diabetics. A few even have niche programs specifically designed for well-controlled Type 2 diabetes.

An independent agent who understands diabetic underwriting will submit informal inquiries to multiple carriers before placing a formal application. This means you get competitive offers without accumulating a trail of formal applications on your MIB record, which can itself raise red flags.

The Worst Thing You Can Do Is Nothing

A rated term policy costs more than a standard one. Maybe $80/month instead of $35. Maybe $150. It's not nothing. But compared to leaving your family with zero coverage because you assumed you couldn't qualify? The premium is a bargain.

You manage your blood sugar every day. Manage this too.