Life Insurance for Diabetes: How It Works in Canada
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Can you get life insurance with diabetes?
Yes, you can get life insurance with diabetes in Canada. However, depending on your condition and health history, you may only qualify for coverage that doesn’t require medical exams or health questions, like guaranteed life insurance.
Term life insurance is typically the most affordable type of life insurance. However, it usually requires applicants to answer health questions and, in some cases, complete a medical exam. As a result, some people with diabetes may not qualify for coverage. Even so, it's worth applying for term life insurance first, as it generally offers the lowest premiums and the highest coverage amounts.
Your eligibility and cost depend on your overall health status—not just whether you’re diabetic—and insurance companies will consider a number of factors when reviewing your application.
Having diabetes doesn’t automatically mean you’ll be denied
Many Canadians with diabetes still qualify for traditional life insurance coverage. Insurers look at your overall health profile—this includes how well your diabetes is managed, rather than your diagnosis alone.
Here are some general guidelines:
- Type 2 diabetes is often easier to insure than Type 1
- Stable blood sugar management may improve eligibility
- Some applicants still qualify for fully underwritten term life insurance
How diabetes impacts life insurance eligibility
Life insurance eligibility is all about assessing risk factors through a process called underwriting, and diabetes is a chronic condition linked to higher chances of developing other health issues that may affect life expectancy.
When an insurer views someone as “higher risk” due to their health or lifestyle, they may charge higher life insurance premiums or, in some cases, decline coverage altogether.
Life insurance underwriting is the process insurers use to assess your health, lifestyle, and other risk factors to determine whether to offer you coverage and at what price.
Types of insurance for people with diabetes
There are three types of life insurance available to diabetics in Canada:
You can find term and whole life or permanent life insurance policies in each category. In addition to life insurance companies, your employer may offer group life insurance—and these policies often have lower premiums (but less coverage).
Each type of policy varies by coverage, price, and how much medical information you must provide. The insurance provider will ask certain questions to determine your life insurance rates and eligibility for specific insurance plans.
Fully underwritten term life insurance policies are the best and most affordable choice for most people who can qualify.
PolicyMe’s Guaranteed Issue life insurance offers some of the highest GI coverage limits in Canada. GI policies may be a good option for peace of mind if you have been denied standard coverage elsewhere—or you do not wish to answer any health questions.
What do insurance providers look at when underwriting for diabetics?
Insurance providers will look at a variety of factors related to your diabetes, including data from your doctors about how well your condition is managed and whether you’re at risk for future health problems.
With stable A1C levels, consistent treatment, and a well-controlled condition, you’re more likely to qualify for standard life insurance rates and coverage options.
Insurers may also conduct prescription checks by reviewing prescription databases to verify your treatment history. They may ask for an APS, or Attending Physician Statement, to hear directly from your doctor.
If you’re asked to complete a medical exam involving measurements, blood pressure checks, and urine or blood samples, this is typically covered by the provider.
Complex diabetes cases can trigger manual underwriting. This means a human underwriter will thoroughly review your health profile before making a decision and issuing a policy.
What to expect when you apply for life insurance with diabetes
The application process will depend on the type of insurance you’re applying for:
Life insurance works by providing coverage while your policy is active. So if you’ve been approved for a policy and you’ve disclosed your diabetes, your loved ones will receive a payout if you pass away.
What to do if you’re denied life insurance coverage
If you’re denied for a fully underwritten policy, you have a few options:
Alternatively, try working with an insurance broker or advisor who can help you find a company and policy that’s a good fit for your health issues.
FAQ: Life insurance for diabetes
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.