Medical Disclaimer: This article discusses how diabetes may affect insurance applications. It does not constitute medical advice. For medical guidance about managing diabetes, consult your endocrinologist or GP.
Can I Get Life Insurance with Diabetes?
Yes, you absolutely can get life insurance with diabetes in Australia.
However, diabetes is considered a "pre-existing condition," which means insurers will assess your application more carefully than someone without diabetes.
The good news? Thousands of Australians with both Type 1 and Type 2 diabetes successfully obtain life insurance coverage every year.
This guide will walk you through exactly how diabetes affects your life insurance options, what to expect during the application process, and strategies to get the best possible coverage.
Understanding How Diabetes Affects Life Insurance
Why Insurers Care About Diabetes
Life insurance companies assess risk based on statistics. People with diabetes have:
- Higher mortality risk: 1.5-2x compared to non-diabetics
- Complication risks: Heart disease, kidney disease, vision problems
- Age of diagnosis matters: Earlier onset = longer exposure to complications
However: Well-managed diabetes with no complications significantly reduces risk.
Type 1 vs. Type 2 Diabetes: Key Differences
Type 1 Diabetes:
- Usually diagnosed in childhood/adolescence
- Insulin-dependent
- Not preventable
- Insurance impact: Higher premiums due to longer disease duration
Type 2 Diabetes:
- Usually develops in adulthood
- Often manageable with diet/medication
- Linked to lifestyle factors
- Insurance impact: Moderate premium increase if well-managed
Pre-Diabetes and Insurance
If you've been diagnosed with pre-diabetes (HbA1c 5.7-6.4%), you may:
- Get standard rates with some insurers
- Face small premium loadings (10-25%)
- Be encouraged to improve control before applying
Tip: If your HbA1c improves to normal range, wait 3-6 months before applying for better rates.
What Insurers Need to Know About Your Diabetes
Essential Information Required
When you apply, insurers will ask detailed questions:
1. Diagnosis Details
- Year of diagnosis
- Type 1 or Type 2
- How was it discovered? (routine test vs. symptoms)
2. Current Management
- Medications (insulin, metformin, etc.)
- Blood sugar monitoring frequency
- HbA1c levels (last 2-3 tests)
- Target ranges and actual results
3. Medical History
- Complications (neuropathy, retinopathy, nephropathy, cardiovascular)
- Hospitalizations related to diabetes
- Episodes of hypoglycemia (especially severe)
- Other health conditions
4. Lifestyle Factors
- Diet and exercise habits
- Smoking status (critical)
- Alcohol consumption
- BMI and recent weight changes
5. Healthcare Engagement
- Specialist visits (endocrinologist)
- GP visits frequency
- Compliance with treatment plan
Documents You May Need to Provide
- Medical reports from GP and specialists
- Recent HbA1c test results (within last 3-6 months)
- Diabetes management plan
- Pathology reports (kidney function, cholesterol, etc.)
Coverage Options for Australians with Diabetes
1. Fully Underwritten Life Insurance
Best for: Well-managed diabetes with no complications
Process:
- Full medical disclosure upfront
- Medical evidence required
- Assessment by underwriters
Outcome:
- Coverage approved with premium loading (typically 50-200%)
- Possible exclusions for diabetes-related claims
- May require additional medical tests
Example Premium Loading:
Standard rate: $50/month
With Type 2 diabetes: $75-$100/month (50-100% loading)
With Type 1 diabetes: $100-$150/month (100-200% loading)
2. Guaranteed Acceptance Life Insurance
Best for: Difficult-to-insure diabetics with complications
Process:
- No medical questions
- Instant approval
- Lower coverage amounts ($10,000-$30,000)
Trade-offs:
- Significantly higher premiums
- Waiting periods (2-3 years for full benefit)
- Limited coverage amounts
When to consider: If fully underwritten applications have been declined.
3. Group Life Insurance (Through Super)
Best for: Recent diabetes diagnosis or poor control
Process:
- Automatic acceptance (most policies)
- Coverage included in superannuation
- Premiums deducted from super balance
Limitations:
- Usually limited to 1-2x salary
- Reduces retirement savings
- Limited customization
Strategy: Use as supplemental coverage while improving control to qualify for individual policy.
Step-by-Step Application Process
Step 1: Optimize Your Diabetes Management (3-6 Months Before)
Actions to improve your insurability:
-
Achieve Stable HbA1c
- Target: Below 7% (53 mmol/mol)
- Consistent results over 6+ months
- Document your progress
-
Regular Medical Check-ups
- GP visits every 3 months
- Annual specialist review (endocrinologist)
- Eye exams, kidney function tests
-
Eliminate Complications
- Address any emerging issues
- Follow all medical advice
- Document compliance
-
Lifestyle Improvements
- Achieve healthy BMI (18.5-25)
- Regular exercise (documented)
- Quit smoking (essential)
Why this matters: Insurers assess your current control, not just diagnosis. Demonstrating 6 months of excellent management significantly improves approval odds.
Step 2: Gather Your Medical Documentation
Before you apply, compile:
- Last 3 HbA1c results
- Recent GP summary letter
- Specialist reports (if applicable)
- Current medication list
- Blood pressure and cholesterol results
Tip: Request a "GP letter for insurance purposes" - many doctors have templates.
Step 3: Get Expert Advice
Work with an insurance adviser who:
- Specializes in pre-existing conditions
- Knows which insurers are diabetes-friendly
- Can pre-submit anonymously to test the waters
Red flags to avoid:
- Advisers who push guaranteed acceptance policies without exploring underwritten options
- Pressure to apply immediately without optimizing your case
- Lack of experience with diabetes cases
Step 4: Complete the Application
Disclosure is critical:
- Answer every question fully and accurately
- Don't minimize or hide information
- Err on the side of over-disclosure
Common mistakes:
- Not disclosing medications
- Forgetting past complications
- Understating hospitalization history
Consequence of non-disclosure: Claim denial, policy cancellation, wasted premiums.
Step 5: Respond to Underwriter Requests
Insurers may request:
- Additional medical tests (ECG, kidney function)
- Updated HbA1c (if over 6 months old)
- Specialist review
- Signed consent for medical records
Timeline: 2-8 weeks from application to decision.
Premium Costs: What to Expect
Type 2 Diabetes (Well-Managed)
35-year-old, non-smoker, HbA1c 6.5%, no complications
| Coverage | Standard Rate | With Diabetes | Loading |
|---|
| $500,000 | $35/month | $52/month | 50% |
| $1,000,000 | $65/month | $98/month | 50% |
Type 1 Diabetes (Well-Managed)
35-year-old, non-smoker, HbA1c 7.0%, no complications
| Coverage | Standard Rate | With Diabetes | Loading |
|---|
| $500,000 | $35/month | $70/month | 100% |
| $1,000,000 | $65/month | $130/month | 100% |
Factors That Increase Premiums Further
- Poor HbA1c control (>8%): Additional 50-100% loading
- Complications (retinopathy, nephropathy): May double premiums or lead to decline
- Smoking: 2-3x standard diabetic rate
- Other conditions (heart disease, obesity): Cumulative effect
Real-World Case Studies
Case Study 1: Type 2 Diabetes - Approved
Client: James, 42
Diagnosis: Type 2 diabetes, 3 years
Management: Metformin only
HbA1c: 6.8% (stable)
BMI: 28 (was 32 at diagnosis)
Complications: None
Lifestyle: Non-smoker, regular exercise
Outcome:
- Approved: $750,000 coverage
- Premium loading: 75%
- Exclusions: None
- Monthly premium: $95 (vs. $54 standard rate)
Key success factors:
- Demonstrated weight loss
- Stable HbA1c over 2 years
- No complications
- Regular medical monitoring
Case Study 2: Type 1 Diabetes - Approved with Conditions
Client: Emma, 29
Diagnosis: Type 1 diabetes, age 12 (17 years)
Management: Insulin pump, continuous glucose monitoring
HbA1c: 7.2% (slightly elevated)
Complications: Early retinopathy (monitored, stable)
Lifestyle: Non-smoker, active
Outcome:
- Approved: $500,000 coverage
- Premium loading: 150%
- Exclusions: Diabetes-related complications (first 5 years)
- Monthly premium: $110 (vs. $44 standard rate)
Key success factors:
- Use of modern diabetes technology
- No hospitalizations in 5 years
- Stable retinopathy (not progressing)
- Excellent compliance
Case Study 3: Type 2 Diabetes - Initially Declined, Later Approved
Client: David, 55
First application (2024):
- HbA1c: 9.2% (poor control)
- Recent hospitalization for diabetic ketoacidosis
- Obesity (BMI 34)
- Result: DECLINED
Actions taken:
- Worked with endocrinologist for 8 months
- Lost 18kg (BMI now 29)
- HbA1c improved to 7.4%
- Started exercise program
Second application (2025):
- Approved: $400,000 coverage
- Premium loading: 125%
- Monthly premium: $165
Lesson: Even after decline, improving control can lead to approval.
Strategies to Improve Your Chances
1. Timing Your Application
Best time to apply:
- After 6+ months of stable HbA1c
- Following weight loss or lifestyle improvements
- Before complications develop
- While you're younger (every year increases premiums)
Worst time to apply:
- Immediately after diagnosis
- During period of poor control
- After recent hospitalization
- When smoking
2. Choosing the Right Insurer
Not all insurers treat diabetes equally. Some are known for being more diabetes-friendly:
Factors to consider:
- Underwriting approach (medical vs. automated)
- Maximum loadings accepted
- Willingness to consider Type 1 diabetes
- Exclusion policies
Tip: An experienced adviser can anonymously pre-approach insurers to gauge appetite before formal application.
3. Demonstrating Excellent Control
Documentation that helps:
- Diabetes diary or app logs showing consistent monitoring
- Proof of specialist engagement
- Letters from doctors praising your management
- Evidence of lifestyle changes (gym membership, dietary consult)
4. Consider Income Protection Too
If life insurance premiums are high, consider Income Protection Insurance:
- Replaces income if unable to work (including diabetes complications)
- Often easier to obtain than life insurance
- Typically includes rehabilitation support
Alternative and Supplemental Coverage
Trauma Insurance with Diabetes
Challenges:
- Harder to obtain than life insurance
- Diabetes-related events (heart attack, stroke) often excluded
- Significantly higher premiums
Strategy: May still be worth applying for non-diabetes coverage (cancer, etc.)
TPD Insurance with Diabetes
Total and Permanent Disability Insurance:
- Covers permanent inability to work
- Diabetes complications (amputation, blindness) may be excluded
- Moderate premium loadings (similar to life insurance)
What If You're Declined?
Understand Why
Request written explanation from insurer:
- Was it HbA1c level?
- Specific complications?
- Recent medical events?
Options After Decline
1. Improve control and reapply (6-12 months)
- Address specific concerns raised
- Document improvements
2. Try different insurers
- Underwriting criteria vary
- Some specialize in complex cases
3. Consider guaranteed acceptance
- No medical questions
- Instant approval
- Higher cost, lower limits
4. Group insurance through super
- Automatic acceptance
- Limited coverage
- Use as interim solution
Never Misrepresent Your Condition
Don't be tempted to:
- Apply through multiple insurers simultaneously (creates red flags)
- Omit or minimize diabetes severity
- Lie about complications or medication
Consequence: All applications may be declined, and you'll be flagged in industry database.
Frequently Asked Questions
Can I get life insurance if I have both diabetes and high blood pressure?
Yes, but expect higher premium loadings (potentially 150-250%). The combination increases cardiovascular risk. Focus on managing both conditions well.
Do I need to disclose gestational diabetes?
If fully resolved with no ongoing glucose issues, some insurers may not load premiums. However, you must disclose it as it increases Type 2 diabetes risk.
Will my premiums decrease if my diabetes improves?
Most policies lock in premium rates. However, you can:
- Reapply for a new policy with better rates
- Keep both policies until new one is in force, then cancel original
Can insurers increase my premiums if my diabetes worsens?
Stepped premiums: Increase based on age only
Level premiums: Fixed for life (can't increase due to health changes)
Exception: If you develop complications, new coverage applications will face higher loadings.
Should I get coverage through my super instead?
Pros: Automatic acceptance, no medical questions
Cons: Usually insufficient coverage, reduces retirement savings
Recommendation: Use super insurance as baseline, supplement with personal policy when possible.
Take Action: Get Your Personalized Quote
Don't let diabetes prevent you from protecting your family's financial future.
Our specialist advisers:
- Work with diabetes-friendly insurers
- Optimize your application for best rates
- Guide you through medical evidence requirements
- Handle underwriter negotiations
Get your free assessment →
Compare quotes and get expert guidance at no cost.
About the Author
Michael Chen is a Senior Insurance Adviser with 15+ years experience specializing in pre-existing condition cases. He has helped over 500 Australians with diabetes secure life insurance coverage.
Disclaimer: This article provides general information only. Individual circumstances vary. Always disclose your full medical history to insurers and seek personalized advice from licensed advisers.