A Diabetic Applicant Finds Affordable Coverage

This is an illustrative scenario based on situations we commonly see. The names and details are fictional and are not based on any actual client. We’ve put it together to show how underwriters actually look at diabetes, why the same applicant can get very different answers from different insurers, and what “affordable” realistically means when a policy is rated.

The short version: Robert, 52, runs a small HVAC business in Nepean and has had type 2 diabetes for six years. He applied online after his diagnosis, was declined, and assumed that was the end of it. When we shopped his case, three insurers gave three different answers. He ended up with $500,000 of 20-year term life insurance at about 50% above standard rates, an indicative $130–$195 a month, with a plan to ask for a better rating in two years.

If you’ve been told you’re uninsurable, or you’ve been putting off applying because you assume the answer is no, this is for you.

The situation

Robert and his wife Carol (50) live in Nepean, near Merivale Road, in a house they’ve owned for 18 years. Two children are in university, one at Carleton and one in Kingston. There’s about $280,000 left on the mortgage, and the business carries a $60,000 equipment loan that Robert personally guaranteed.

Robert was diagnosed with type 2 diabetes at 46 during a routine physical. His A1c at diagnosis was in the mid-8s. He lost some weight, started metformin, and has been steady for the past four years with A1c results between 6.4 and 6.8. He takes one blood pressure medication and a statin, sees his family doctor twice a year, and has had no eye, kidney or nerve complications. He’s never smoked. His body mass index sits at the upper end of what most insurers consider acceptable without a separate rating.

Shortly after diagnosis, when his numbers were still high and his treatment plan was new, Robert applied for a policy through an online direct-to-consumer insurer. The application was declined. He took that as a verdict and stopped looking. Carol, who has a small group life policy through her job at a school board, had been quietly worrying about it ever since.

The risk

Robert is the primary earner, and the business depends on him personally. If he died, Carol would face the mortgage, the equipment loan (which the lender could call), the remaining university costs, and the loss of most of the household income. His group coverage was zero; small businesses rarely have a plan.

We ran a needs analysis using the approach in how much life insurance you need. The number came out around $650,000: mortgage, business loan, two more years of tuition and living costs, and several years of income replacement so Carol could wind down or sell the business on her own timeline. Robert set a budget ceiling first, and we agreed to see what $500,000 would cost across the market before deciding.

How underwriters look at diabetes

Before we sent anything to an insurer, we walked Robert through what a life underwriter actually looks at. No two companies use the same manual, but the factors are consistent:

• Type of diabetes. Type 2 is generally assessed more favourably than type 1, largely because of typical age at onset and duration.
• Age at diagnosis and duration. Later onset is viewed more favourably. A diagnosis in the mid-40s with six years of history is a middle-of-the-road case; a diagnosis in the 20s is rated more heavily.
• Control, measured by A1c. This is the single biggest lever. Results consistently under about 7 are typically the best case; 7 to 8 is usually still insurable at a higher rating; results well above that often lead to a postponement until control improves.
• Treatment. Diet-controlled and oral medication cases are viewed more favourably than insulin, although insulin use by itself is not a decline for most insurers.
• Complications. Kidney involvement (protein in the urine, reduced kidney function), retinopathy, neuropathy or cardiovascular disease change the picture significantly.
• Co-factors. Blood pressure, cholesterol, weight and, above all, smoking. Smoking combined with diabetes is rated very heavily.
• Compliance. Regular doctor visits and consistent test results reassure an underwriter that the condition is being managed.

The likely outcomes, in order from best to worst, are: standard rates (uncommon for diabetes, but possible for very mild, late-onset cases with some insurers), a rated policy (the most common result for well-controlled type 2), a postponement (usually for recent diagnosis or unstable control), or a decline (typically for significant complications or very poor control). Our guide to life insurance underwriting goes deeper into how rate classes work.

Robert’s online decline made sense in hindsight. He applied within months of diagnosis, with an A1c still in the 8s and a treatment plan that hadn’t yet proven itself. Most insurers would have postponed or declined that application. Four years of stable results later, he was a very different case on paper.

The options considered

We gave Robert four routes. The indicative premiums are illustrative monthly figures for a 52-year-old male non-smoker; actual rates depend on health, insurer and the rating offered, and none are quotes.

Option	Coverage	Underwriting	Indicative monthly cost	Trade-offs
A. Fully underwritten term, rated	$500,000, 20-year term	Paramedical exam, doctor’s records	~$130–$195 (at ~50% above standard) to ~$170–$260 (at ~100% above)	Best value per dollar if approved; outcome depends on insurer
B. Simplified issue term	Typically capped at a lower amount (often a few hundred thousand)	Health questions, no exam	~$150–$230 for $300,000	No exam, faster; more per dollar; some questions exclude diabetes on insulin or with complications
C. Guaranteed issue	Small amounts, commonly $25,000 or less	No questions	~$90–$140 for $25,000	Accepts anyone; deferred benefit in the first two years; expensive per dollar
D. Do nothing	$0		$0	Carol carries the full risk

Option A was clearly the best value if an insurer would take the case at a reasonable rating. Option B was the fallback. Option C was a last resort we hoped not to need. We cover B and C in detail in simplified issue life insurance and no-medical-exam life insurance in Canada.

What we did: shop the case before applying

Rather than submit a formal application and risk another decline on Robert’s record, we did what brokers do with any medical case: we sent an anonymous summary to the underwriting desks of several insurers we thought would be strongest on well-controlled type 2 diabetes. The summary included his age, diagnosis date, recent A1c readings, medications, blood pressure, height and weight, and a note that he had no complications and a clean smoking history.

Robert helped by pulling together the documentation that makes underwriters comfortable: his last four A1c results, his most recent kidney function and urine tests, a current medication list, and the date of his last eye exam. Having those numbers up front meant the informal answers came back quickly and were reliable.

The responses:

• Insurer 1: tentative offer at roughly 50% above standard rates (in underwriting language, a moderate table rating), subject to a paramedical exam confirming the numbers.
• Insurer 2: tentative offer at roughly 100% above standard.
• Insurer 3: decline, based on the combination of diabetes, blood pressure medication and weight.

Same applicant, same information, three different answers. This is the whole argument for using a broker when you have a health condition. If Robert had picked insurer 3 on his own, he’d have collected a second decline and probably given up for good.

The recommendation and indicative cost

Robert applied to insurer 1 for $500,000 of 20-year term. The paramedical exam at his home took about 30 minutes, the insurer requested a report from his family doctor, and the offer was confirmed about six weeks later at the tentative rating.

All figures are illustrative monthly premiums; actual rates depend on age, health, insurer and the rating offered, and these are not quotes.

	Standard non-smoker, 52	Robert’s rated offer (~50% above standard)
$500,000, 20-year term	~$85–$130/month	~$130–$195/month

He named Carol as beneficiary. Because the death benefit goes to a named beneficiary, it would generally be received tax-free and bypass probate.

We also asked the insurer about a reconsideration. Most companies will review a rating after a period of stable results, commonly two years, if you submit updated tests. If Robert’s A1c stays where it is and his weight comes down a little, there’s a reasonable chance of a lower rating, which would reduce the premium for the remaining term. That’s written into his file with a reminder for 2028.

One thing we didn’t recommend: critical illness insurance. Diabetes is underwritten more strictly for critical illness than for life coverage, because it raises the likelihood of the very conditions the policy covers. Some insurers decline it outright; others offer it with heavy ratings or exclusions. For Robert, the premium wouldn’t have been good value. We suggested he redirect that budget to the term policy and an emergency fund.

For context on where his rated premium sits against the market, see life insurance rates at age 50 in Ontario and our broader guide to life insurance for diabetics in Canada.

Lessons you can apply

A decline from one insurer is one insurer’s opinion. Underwriting manuals differ, and the same case can be rated moderately by one company and declined by another.

Timing matters. Applying within months of a diagnosis, before treatment has stabilised, invites a postponement or decline. Two to three years of steady results is a much stronger application.

Bring your numbers. Recent A1c results, kidney tests, a medication list and your doctor’s contact details speed up underwriting and reduce surprises.

Ask for an informal inquiry first. A broker can test the market anonymously so you don’t collect formal declines.

Rated is not the same as unaffordable. Fifty percent above standard on a term policy is often still less than people spend on their phone plan.

Ratings can improve. Ask about reconsideration after a couple of years of stable results.

Be honest on the application. A rated policy that pays is worth infinitely more than a cheaper one voided during the contestability period for a misstatement.

How Hayes can help

If you’ve been told no, or you’ve assumed the answer would be no, talk to us before you write yourself off. We work with 30+ Canadian insurers and know which ones tend to be reasonable on diabetes, blood pressure, weight and other common conditions. We’ll run an informal inquiry first, explain the offers in plain English, and tell you honestly if a simplified issue policy is the better route.

Compare quotes from 30+ Canadian insurers in about two minutes, free and with no obligation, or contact us and we’ll start with a conversation about your health history and what you’re trying to protect.