Life Insurance for Diabetics in Canada: Can You Get Covered?

If you have diabetes and are wondering whether life insurance is even possible, here is the direct answer: usually, yes. Most Canadians with diabetes are approved, often with a higher premium than a person without the condition, and sometimes at standard rates when the diabetes is well controlled and diagnosed later in life.

This guide is for people living with type 1 or type 2 diabetes who want coverage for their family, and for anyone who has already been declined once and assumed that was the final word. It explains what underwriters actually look at, what a “rating” means for your premium, and how to give your application the best chance. It is not medical advice; it is a description of how insurers typically assess the condition.

The short version: diabetes is a rating, not a refusal

Life insurers price risk. Diabetes is a condition that, statistically, raises long-term mortality risk, so insurers usually charge more for it. But the range is wide. A 50-year-old with type 2 diabetes managed by diet and metformin, an A1C in the low 6s and no complications is a very different risk from a 30-year-old with type 1 diabetes, a history of hospitalizations and early kidney changes.

Underwriters sort applicants into classes. Broadly:

• Standard or preferred: the same rates a healthy applicant would pay. Possible for some well-controlled type 2 cases at select insurers.
• Rated: approved with an extra premium, expressed either as a percentage of the standard premium or as a flat extra per $1,000 of coverage. This is the most common outcome for diabetes.
• Postponed: the insurer wants to wait, often because a diagnosis is recent or treatment has just changed.
• Declined: the insurer will not offer coverage. More likely with severe complications, very poor control or several other health issues combined.

The goal, and where a broker helps, is landing in the best class available for your file.

How underwriters assess life insurance for diabetics

Every insurer uses its own underwriting manual, but they all look at a similar set of factors.

Type 1 vs. type 2

Type 2 diabetes is generally rated more favourably than type 1. Type 1 is typically diagnosed younger, requires insulin from the outset, and means more years of exposure to the condition. That said, type 1 applicants with excellent control and no complications are approved by many insurers with a rating.

Age at diagnosis and duration

Later diagnosis is better from an underwriting perspective. A type 2 diagnosis at 55 carries less long-term risk than one at 30, because the person has spent fewer years with elevated glucose. Someone diagnosed in childhood will have accumulated many years of the condition by the time they apply at 35.

A1C control

The HbA1c test measures average blood glucose over roughly the previous two to three months, and it is the single number underwriters care about most. They will usually want to see readings from the past year or two, not just one result. Steady readings in the range a physician would call well controlled tend to produce the best offers; readings that are high or that swing widely lead to heavier ratings. Consistency matters as much as the level.

Treatment

How the condition is managed says a lot about its severity. Underwriters generally view diet-and-exercise management most favourably, oral medication next, and insulin as indicating a more advanced or type 1 condition. Recent changes in treatment, especially a move to insulin, may lead to a postponement while the insurer waits to see how control settles.

Complications

This is often the deciding factor between a mild rating and a heavy one. Underwriters look for evidence of diabetes affecting the kidneys (protein in the urine, reduced kidney function), eyes (retinopathy), nerves (neuropathy) or cardiovascular system (heart disease, stroke, peripheral artery disease). The absence of complications, documented by regular check-ups, is a strong positive.

Everything else

Diabetes is assessed in context. Blood pressure, cholesterol, weight, smoking status and any other conditions all feed into the final decision. A diabetic who smokes will be rated for both. Someone who has lost weight, brought their blood pressure down and sees their doctor regularly presents a much stronger file.

What a rating means for your premium

Ratings are usually expressed as a percentage of the standard premium. A “150% rating” or “table 2” means you pay one and a half times what a standard applicant would; “200%” means double, and so on. Some insurers add a flat extra per $1,000 of coverage instead, or in combination.

The table below shows indicative monthly premiums for $500,000 of 20-year term at different rating levels, for a non-smoker in their 40s. These are illustrative ranges to show the pattern, not quotes. Your actual rating depends entirely on your medical file and the insurer.

Underwriting outcome	Typical profile	Indicative monthly premium (age 45, $500,000, 20-year term)
Standard	Well-controlled type 2, diagnosed after 40, no complications, healthy otherwise	roughly $60–$95
Mild rating (roughly 125–150%)	Type 2 on oral medication, good A1C history, no complications	roughly $75–$145
Moderate rating (roughly 175–250%)	Type 2 on insulin or type 1 with excellent control	roughly $105–$240
Heavy rating (roughly 275–400%)	Type 1 with variable control, or type 2 with early complications	roughly $165–$380

Two observations. First, a rated policy is still often far cheaper than people expect, particularly on a term product; a rated 20-year term at 45 is usually more affordable than an unrated permanent policy. Second, the spread between insurers at the same rating level can be substantial, which is the next point. Our Ontario life insurance cost guide covers the general factors that move rates.

Why a broker matters: insurers rate diabetes differently

This is the part that people who apply directly to one insurer never see. The same diabetic applicant can be rated standard at one insurer, rated 175% at a second, and declined at a third. Underwriting manuals differ, and some Canadian insurers have deliberately built more competitive guidelines for diabetes because they want that business.

A broker who works across many insurers can:

• Pre-screen anonymously. Before you formally apply, a broker can describe your profile to several underwriting teams and get informal feedback on the likely rating. This avoids a decline landing on your record at an insurer that was never going to be a good fit.
• Place you with the right company. Some insurers are known for treating well-controlled type 2 diabetes generously; others are more comfortable with type 1. Matching the file to the insurer is most of the work.
• Handle the paperwork. Attending physician statements, lab results and follow-up questions are easier when someone is chasing them for you.
• Revisit later. If your control improves or complications resolve, a broker can request reconsideration of the rating, often after a year or two.

We represent 30+ Canadian insurers and see this variation constantly. It is not that one insurer is “best” for diabetics across the board; it is that each one is strong for a particular profile, and rates change.

Simplified issue and guaranteed issue as a fallback

If full underwriting produces a heavy rating or a decline, there are other routes.

Simplified issue policies ask a set of health questions but require no exam, no bloodwork and no doctor’s report. Many are designed to accept diabetics who answer “no” to the knock-out questions about complications and hospitalizations. Coverage amounts are moderate, and premiums are higher than a standard fully underwritten policy, but they can be lower than a heavily rated one. Approval is often quick.

Guaranteed issue policies ask no health questions at all and accept anyone in the eligible age range. They are limited to small amounts, typically enough for final expenses, carry the highest premium per dollar, and usually have a two-year waiting period during which a non-accidental death returns premiums rather than the full benefit. They are a last resort, but they exist.

Our advice is to try full underwriting first through a broker who can pre-screen, then fall back to simplified issue only if the fully underwritten offer is unworkable. Many diabetics who assume they need a no-medical policy would qualify for a better-priced traditional one.

What to prepare for the application

A well-organized application gets a better and faster result. Gather these before you start:

• Recent A1C results, ideally the last two or three readings with dates. If you do not have copies, your doctor’s office can provide them.
• Your medication list, including doses and how long you have been on each.
• The date of diagnosis and the type of diabetes.
• Your doctor’s name and contact details, since the insurer will likely request an attending physician statement.
• Recent blood pressure and cholesterol numbers, if you have them.
• Details of any complications or hospitalizations, including dates and current status.
• Height and weight.

Be complete and honest. Insurers verify what you tell them through the paramedical exam and your medical records. Undisclosed diabetes is one of the more common reasons a claim is contested within the two-year contestability period, and it defeats the entire purpose of buying coverage.

How much and what kind of coverage to buy

The condition changes the price, not the need. Work out the amount the same way anyone would, using the DIME method: debts, income replacement, mortgage and education, less what you already have.

For most diabetic applicants, term life insurance is the right product, because the rating multiplies a small base premium. Choose a term long enough to cover your family’s dependence on you, and check that the policy is convertible to permanent coverage without new medical evidence. That conversion right is worth more to someone with a chronic condition than to almost anyone else, because it guarantees future insurability regardless of how your health evolves. Our term vs. whole life guide explains when permanent coverage is worth the extra cost.

It is also worth asking about critical illness insurance. Diabetes can make it harder to qualify, and some policies exclude conditions related to it, but a broker can tell you what is realistic.

How Hayes can help

We help Ottawa families with diabetes get covered every month, and the process almost always starts the same way: tell us your type, your A1C history, your treatment and any complications, and let us pre-screen you with the insurers most likely to give a fair offer before anything formal goes on file. We compare 30+ Canadian insurers, we know which ones lean generous on diabetes, and our advice costs you nothing because the insurers pay us.

Compare quotes from 30+ Canadian insurers in about 2 minutes, free and with no obligation, or contact us and we will give you a straight read on what to expect.