In honor of Diabetes Awareness Month, we looked at average monthly premiums for people with Type 2 diabetes. According to our data, a Type 2 diabetes diagnosis has a significant impact on the cost of life insurance premiums. And, in a reversal of what our data typically shows, younger applicants with diabetes are seeing a larger difference in pricing than older applicants. Astonishingly, a 25-year-old female with Type 2 diabetes will pay 215% more for $1 million in coverage than her non-diabetic counterpart. But a 55-year-old female with the same condition would pay 68% more than someone without diabetes. The bigger price gap for younger applicants is likely because people diagnosed with Type 2 diabetes at a young age have a higher likelihood of experiencing other health risks.
A diabetes diagnosis impacts more than just your life insurance rates, however. It’s important to start getting screened for diabetes if you’re 35 or older, especially given the current health pandemic. Experts have found that instances of COVID-19 may be causing an increase in diabetes cases, as the virus has been shown to infect and possibly even attack insulin-producing cells in the pancreas.
The chart below shows average monthly premium prices for a 20-year term life insurance policy for individuals who were diagnosed with Type 2 Diabetes in 2017 and are not insulin dependent. Sample applicant has an average annual A1C reading of 5.7 and a treatment plan includes 250 mg of Metformin. Sample applicant reports that diabetes is well controlled with medications and there are no complications. Quotes are based on the Policygenius Life Insurance Price Index Methodology.
The chart below shows average monthly premium prices for a 20-year term life insurance policy for non-smokers in a Preferred health classification; quotes are based on the Policygenius Life Insurance Price Index Methodology.
The chart below shows average monthly premium prices for a 20-year term life insurance policy for smokers in a Preferred health classification; quotes are based on the Policygenius Life Insurance Price Index Methodology.
How our index works
Life insurance prices are primarily based on life expectancy; taking into account an applicant’s age, health, hobbies, and medical history. The riskier you are to insure or the shorter your life expectancy, the higher your rates will be.
Prices are also affected by the length of a policy and the amount of coverage someone is looking to purchase. A longer policy term or higher coverage amount might increase monthly or annual premiums. Policygenius generally recommends people buy life insurance 10 to 15 times their individual income with a term long enough to get them to retirement age. Since there are a lot of variables involved, we specialize in helping consumers get the right policy to fit their individual needs.
Policygenius is the nation’s leading online insurance marketplace, with headquarters in New York City and Durham, North Carolina. We’ve helped more than 30 million people shop for all types of insurance like they shop for everything else — online — and have placed over $100 billion in coverage. At Policygenius, shoppers can compare life insurance companies side-by-side in one place. We provide free quotes from the nation’s top life insurers. And, once someone formally submits an application, our licensed experts walk them through every step of the process.
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