- The Savvy Promise
According to Diabetes Australia, diabetes affects the lives of 1.7 million Australians. This number includes 1.2 million known cases and around 500 000 estimated undiagnosed Type 2 diabetes sufferers. However, this number is rising daily by 280 new cases, or one new case every 5 minutes.
Information that should be provided by a diabetic during the application process
A person with diabetes should declare this condition to the insurer. The sufferer will need to submit a medical report as well as filling out a diabetic questionnaire on the application form. The key information the insurer will need, to create a risk profile, is whether the sufferer has Type 1 or 2 diabetes. Type 1, which accounts for 10% of diabetic cases, is the higher risk.
Other information required will include, what age the diagnosis was made, whether there is a family history of diabetes, and whether there is excessive alcohol consumption. Additional data comprises the control measures in place, whether these are effective, and whether there are any health complications. That said, according to the Baker IDI Hearth and Diabetic Institution’s study, in 2010 half of diabetic sufferers had their diabetes under control.
How does diabetes influence your life insurance?
There may be some life insurance companies that do not cater for diabetics; however, there are enough companies that do. These companies will use the information you have provided to assess your risk factor, and this data will be used to calculate the premium.
What does all of this mean to you?
On the downside, the approval and rating class may be changeable and subjective. The outcome can also mean that people with Type 2 diabetes, under care, and leading a healthy lifestyle, could be subject to standard life insurance terms. However, a standard $500 000 20-year policy which normally costs around $40 monthly, could cost a Type 1 diabetic a premium of $70 for the same policy.
Did you find this page helpful?
This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.