Individuals with diabetes often struggle to find mortgage protection insurance. They may give up because they believe no company will cover them. However, mortgage protection companies offer policies to diabetics, and these policies don’t have to cost a fortune. What should a person expect when searching for a policy of this type?
Can Diabetics Get Mortgage Protection Insurance?
A person with diabetes will find they can secure mortgage protection insurance. In fact, some diabetics get this coverage while paying the same rate as a person who doesn’t have this condition. It depends on the severity of their condition, what other health conditions they have, and what medications they take.
When evaluating a diabetic, the mortgage protection provider considers the individual’s A1C level, height and weight, and more. They also want to know if the person has issues related to diabetes, such as neuropathy.
Health Classes for MPI
Mortgage protection policies may come with a medical exam requirement. Not all do, however, so a person may choose to forgo the exam and pay a slightly higher rate. For those who have the exam, the insurer places each person into a health class. The current health classes are:
Preferred Plus-Best rates, but not available to diabetics
Preferred-Available for diabetics at higher rates, limited to individuals diagnosed with diabetes after the age of 60 who have no other health issues
Standard Plus-Healthy diabetics over the age of 50 qualify for this health class, but must be in above-average health
Standard-Most type 2 diabetics fall into this health class if they received the diabetes diagnosis after the age of 50 and only have minor health issues
Substandard-Anyone who doesn’t fit into one of the above classes will fall into the substandard category, which has eight tables. Each table comes at a slightly higher rate. Anyone diagnosed with type 2 diabetes before the age of 50 and those with type 1 diabetes will be classified as substandard.
Forgoing the Medical Exam for Diabetics
Men and women who don’t want to undergo a medical exam and those who need coverage right away will pay more for mortgage protection insurance. Carriers either charge all diabetic applicants the same price or place them into one of two categories. Applicants often receive a decision immediately, although it may take a few days.
A type 1 diabetic is a good candidate for a non-medical exam policy, as their price will probably jump if they have a medical exam. Why is this the case?
Diabetes Type and Mortgage Protection Insurance
Individuals with type 1 diabetes encounter more challenges when attempting to purchase this type of policy. In fact, most companies refuse to insure these individuals without a medical exam. The purpose of the exam is to show the disease is under control.
Type 2 diabetics, in contrast, often qualify for a non-medical exam policy. They may choose to have the exam to save money.
Best Mortgage Protection Insurance Companies for Those with Diabetes
Individuals often turn to their car or home insurance provider when they wish to purchase mortgage protection insurance. Diabetics, however, need to consider other options. In fact, major insurers such as Geico and Allstate aren’t good options for individuals who don’t have diabetes and wish to purchase this type of policy.
Diabetics should consider the following companies when they want to purchase mortgage insurance protection. Foresters Insurance is one of the most lenient options and offers excellent rates for individuals with type 1 or type 2 diabetes.
American Amicable offers incredibly low non-medical exam rates for diabetics, but it doesn’t offer medical exam policies. Mutual of Omaha offers great rates for individuals who undergo a medical exam. However, the rates for individuals who choose to not undergo an exam are high.
Coverage for Individuals who Have Complications of Diabetes
Individuals who have complications with their diabetes pay higher rates if they get coverage. Most companies decline applicants suffering from uncontrolled diabetes, coronary heart disease, and more. However, the right insurance provider works with individuals in this situation to help them find the coverage they need.
Work with an independent insurance agency to find the best coverage for the individual. The agency works with clients to find the right products for their specific needs.
To do so, the agents compare rates and policies from different providers to help clients find those that best meet their requirements. This provides the applicant with peace of mind, as they know their loved ones will be cared for in the event of their passing. No price can be put on this peace of mind.