Life insurance for diabetics (Type 1 & Type 2) in Australia
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- Understanding the Condition
- The Warning Signs
- The Medical Implications
- Why Diabetes Matters for Insurers
- Life Insurance with Pre-existing Medical Conditions
- Life Insurance for Diabetics and how it Affects Your Premiums
- Questions diabetics should have ready for their pre-assessment:
- How to Choose an Insurer for Diabetics
- What Can I do to Improve My Premium?
Can I get Life Insurance with Diabetes?
Yes, you can often get life insurance with diabetes. If your condition is well managed, many insurers will offer cover, looking at your type (1 or 2), when you were diagnosed, how you manage it (diet, medication, insulin), your latest HbA1c and trend, and any complications or other health issues. Well controlled cases are frequently approved, while poor control or complications can mean higher premiums, exclusions, or a delay. For a smoother process, ask for a preassessment first so an adviser can review your recent results and tell you what terms you’re likely to see before you apply.
Understanding the Condition
Diabetes is a disease in which blood glucose levels are too high (hyperglycaemia) caused by your body not producing enough insulin, or your cells not responding adequately to the insulin that is produced. Insulin is a hormone that helps get the glucose into your cells to give them energy.
There are three types of diabetes:
Type 1 diabetes or juvenile diabetes
Type 1 is an autoimmune disease and develops when the pancreas stops producing insulin. This disease presents in childhood to early adulthood. Onset is generally before the age of 30 years, with a peak age of around 14 years.
Type 2 diabetes
Mainly occurs in late adulthood. This is the most common form of diabetes. Insulin is still produced by the pancreas, but it does not work effectively.
Gestational diabetes
Develops during pregnancy when your body makes more hormones. This can cause the cells in your body to use insulin less effectively.
The Warning Signs
Both Type 1 and Type 2 diabetes show similar symptoms, but the severity is usually greater in Type 1. Common symptoms of diabetes include:
- Tiredness and lack of energy
- Extremely thirsty
- Frequent urination, especially at night
- Skin infections (e.g. thrush) and itchiness
- Rapidly losing weight without trying to
- Blurred vision
- Cuts and wounds take longer to heal
The Medical Implications
Many people with the condition will in time be affected by a variety of serious ramifications which can affect almost any organ in the body.
Individuals with diabetes have an increased risk of:
- Severe eye problems: Diabetic retinopathy (a condition affecting the blood vessels in the eye) can be found in about 15% of Australians with diabetes, Baker IDI, Heart & Diabetes institute (2012).
- Kidney disease: High levels of blood glucose damages your blood-filtering capillaries in your kidneys resulting in a condition known as diabetic nephropathy.
- Cardiovascular disease is the leading cause of death in people with diabetes.
- Stroke: If you have diabetes your chances of having a stroke increases 1.5 times.
- Nervous system disease: Diabetes is associated with nerve damage and poor circulation in the lower limbs.
- Impotence in men: Because diabetes can damage the blood vessels and nervous system, sexual dysfunction is more common in men who poorly control their diabetes.
Why Diabetes Matters for Insurers
Diabetes is a major health challenge in Australia, with more than 1.3 million people living with the condition as of 2021. Its complications significantly increase the likelihood of critical events, as people with diabetes are two to four times more likely to suffer a heart attack or stroke. Around 70 Australians undergo limb amputations each week due to diabetes-related complications. For insurers, these risks translate directly into potential claims across critical illness, income protection, disability, and life insurance products.
The burden of diabetes also carries long-term consequences. Type 1 diabetes accounts for nearly 20,000 years of healthy life lost each year, while type 2 diabetes contributes more than 120,000 years, ranking among the top 15 causes of disease burden nationally. Mortality for people with type 1 diabetes is three to four times higher than average, while type 2 outcomes depend heavily on the age at diagnosis. With life expectancy reduced by five to ten years for people diagnosed in mid-life, insurers must carefully assess risk factors when underwriting, balancing cover accessibility with the realities of higher claim probability.
Life Insurance with Pre-existing Medical Conditions
When you apply for life insurance with diabetes, insurers usually begin with a pre-assessment. This is designed to give them a clear picture of your health and how well your condition is managed. The key factors they look at include the type of diabetes you have, the age you were diagnosed, the treatment or medication you use, and your most recent HbA1c results. All of this information helps insurers estimate your level of control and long-term risk.
HbA1c testing is particularly important because it shows your average blood sugar levels over time, rather than just a single reading. An HbA1c around 6 to 6.5 is generally considered good control, and insurers often view this favourably. Higher readings may suggest a greater likelihood of long-term complications such as kidney disease, high blood pressure, or heart problems. If these risks are present, it can result in higher premiums or, in some cases, a decline in cover. The more stable your readings and the fewer complications you have, the better your chances of being approved on competitive terms.
For critical illness (CI) insurance
Most insurers will focus on important potential claim triggers related to your diabetes, such as:
- Cardiovascular diseases: Myocardial infarction, coronary bypass and stroke.
- Nephropathy: Renal failure and organ transplant
- Retinopathy: Blindness
Therefore, if you’ve been diagnosed with diabetes and suffer from any of the above mentioned conditions, you will most likely be declined for critical illness cover.
Generally, diabetics that require Trauma Insurance (Critical Illness cover) will need to be in very good control of their condition and manage it properly, without having any other related medical conditions or health concerns.
For disability insurance (TPD or Income Protection)
It is possible to obtain cover, however, due to the many severe complications of diabetes affecting almost any organ, it is a major cause of disability. Therefore, most insurance companies will give you a loading, even when your condition is well controlled. The level of loading will depend on your level of control over the condition, and whether you have any related medical conditions. If your condition is poorly managed your application might be declined all together.
It’s important to note, that each case of diabetes is unique and so is the individual diagnosed with the condition. Thus, to fully understand the cover options available to you, it’s advisable that you seek guidance from a specialist advisor and request a review of your individual circumstances.
Life Insurance for Diabetics and how it Affects Your Premiums
Some of the factors that will affect the cost and availability of life insurance include:
- Date of diagnoses
Life insurance underwriters are generally interested in the life expectancy of the applicant. Therefore, how long you’ve had diabetes is an important factor that will influence your rating. The younger the age of onset of symptoms, the worse the prognosis. - Type of diabetes
Life insurance for type 1 diabetes and life insurance for type 2 diabetes will be assessed and granted differently. If you’ve been diagnosed with type 2 diabetes, your blood pressure and weight, as well as your smoking status will probably be just as important as your HbA1c reading when assessing your risk of heart attack and stroke claims. - The complications you experience or have previously experienced due to the diabetes
Generally, any complications resulting from diabetes will heavily influence the price of your premiums, as your risk for disability and death increases. - Since your diagnosis, how has the diabetes been controlled?
People with diabetes who commit to a program generally have better blood glucose control and thus fewer complications.
Insurers will want to review your HbA1c readings before and after implementing your treatment plan, to assess compliance thereof. Adversely, poor control and lifestyle habits such as smoking and obesity will negatively affect your rating. - How frequently do you visit your doctor?
Most insurers would want to know that your diabetes is under control. The best way to show this is through documentation from frequent doctor visits. - Family medical history
Your family’s health history has a great deal of significance because it is used to determine the possibility of you possibly contracting a particular illness or medical condition.
If your parents or siblings have suffered a series of medical conditions, like a stroke or heart attack, there might be a greater chance that you’ll fall victim to these conditions as well. Insurers will have to take this into consideration.
The more accurate and comprehensive the information you provide, the more accurate the pre assessment of your condition will be. This could make a big difference in the potential outcome of your application and the insurer you end up selecting when lodging your formal application.
Questions diabetics should have ready for their pre-assessment:
- Type of diabetes: Are you living with type 1, type 2, or gestational diabetes?
- Age and date of diagnosis: When were you diagnosed, and how long have you had the condition?
- Treatment and medication: Is your diabetes diet-controlled, managed with oral medication, or treated with insulin?
- Latest HbA1c reading: What is your most recent result, and how stable has it been over time?
- Other health indicators: What are your latest blood pressure and cholesterol readings?
- Complications: Have you experienced any related issues such as kidney disease, high blood pressure, vision problems, or neuropathy?
- Additional medical history: Do you have any other health conditions not directly linked to diabetes?
How to Choose an Insurer for Diabetics
Just because one company declined your pre-assessment or formal application, doesn’t mean all companies will do the same. Each company adheres to a different set of guidelines, and these guidelines may even change over time. Do not limit yourself by applying to just one company. Shop around and get multiple pre-assessments and quotes.
Your Duty to Take Reasonable Care
When applying for life insurance, you have a legal duty to take reasonable care when answering the insurer’s questions. This means providing honest, complete, and accurate information about your health, including whether you have been diagnosed with diabetes. If important details are left out or misrepresented, the insurer may reduce or deny a claim, or even cancel the policy altogether.
It is equally important to disclose if you have ever been declined for cover, offered restricted terms, or charged a higher premium in the past. Being transparent ensures that your policy is valid and your loved ones are protected when it matters most. Taking reasonable care at the application stage can save significant stress and financial hardship down the track.
What Can I do to Improve My Premium?
Premiums are generally lower for those that exercise regularly and follow a strict diet and programme, as prescribed by their GP, while keeping their blood sugar levels under control with medication. For an insurer, the ideal diabetic candidate might have the following:
- Ongoing treatment with conditions under control and a
- HbA1c level between 6 and 6.5
- A BMI within normal range
- Be a non-smoker
- Have no complication relate to diabetes, or other illnesses
- No high cholesterol or blood pressure
The key to affordable cover is in working with a specialist, such as Life Insurance Direct, who specialises in assisting clients with complicated medical histories. Such specialists also have access to some major life insurance companies.
As specialists we understand the complexities of certain conditions and can provide insights into which insurers have favourable and less favourable views on certain medical conditions, past times or risky occupations. We can guide and assist you in answering all your questions and help you find a policy to fit your stated requirements.
Frequently Asked Questions and Answers
Can diabetics get life insurance at standard rates?
Yes, in some cases. People with well-managed Type 2 diabetes are often able to secure cover at or close to standard rates, particularly if they have no serious complications and demonstrate good long-term control of their condition. Insurers look closely at factors like HbA1c levels, body mass index, smoking status, and blood pressure readings. Applicants who maintain healthy readings and follow medical advice consistently are considered lower risk, which can result in more affordable premiums. While Type 1 diabetes is usually assessed more strictly, it is still possible to access competitive life insurance with the right insurer and medical documentation.Do insurers treat Type 1 and Type 2 diabetes differently?
Yes, insurers assess Type 1 and Type 2 diabetes differently because the conditions carry different levels of risk. Type 1 diabetes usually begins earlier in life and often requires lifelong insulin management, which means insurers may apply higher loadings to account for the increased likelihood of long-term complications. Type 2 diabetes is far more common in adulthood and, when well managed through diet, exercise, and medication, may be viewed more favourably. Insurers will also weigh up additional risk factors such as high blood pressure, cholesterol, or obesity. This is why it is important for applicants to choose an insurer that understands the nuances of each condition.What medical tests are required when applying?
When applying for life insurance with diabetes, insurers will usually request recent medical evidence to understand your current health status. This often includes blood tests such as HbA1c, which shows your average blood sugar levels over several weeks, as well as cholesterol readings and kidney function tests. A doctor’s report or full medical history may also be required, especially if you have lived with diabetes for many years. In some cases, insurers may ask for a medical examination or additional testing if complications such as neuropathy, retinopathy, or cardiovascular issues are suspected. The more up-to-date and detailed your medical information, the smoother the assessment process will be.Will my premiums go down if I improve my diabetes management?
Yes, improving your diabetes management can have a positive effect on your premiums over time. Insurers are primarily interested in your risk of developing complications, and strong control of your condition helps reduce that risk. For example, keeping HbA1c levels between 6 and 6.5, maintaining a healthy BMI, exercising regularly, and avoiding smoking are all signs of good long-term management. Some insurers may offer to review your policy after a period of improved health, which could reduce loadings that were originally applied. Even if your premiums do not drop immediately, improved control increases your chances of getting accepted by more insurers and broadens your options for competitive cover.Can I apply to more than one insurer if I am declined?
Absolutely. Being declined by one insurer does not mean all insurers will refuse you, because each company has its own underwriting guidelines and risk models. Some insurers are more experienced in covering applicants with chronic conditions such as diabetes, while others may be stricter. This is why working with a specialist insurance advisor is so valuable — they can help you identify which insurers are more likely to offer affordable cover and prepare your application to highlight strong control of your condition. Providing accurate and detailed information is essential, and a specialist can often negotiate on your behalf to achieve a more favourable outcome.
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Hi,
My husband and I are looking into life insurance.
My husband is a type 1 diabetic since the age of 11, he is now 37 and has great control of his diabetes with no complications and is fit and healthy.
However, he is also an electrician, self-employed with his own business, which I believe is seen as a high-risk job.
Based on my husband’s medical condition and the type of work he does, in your opinion, would it be difficult to obtain life insurance? We have two small children, and my husband is the main breadwinner, so to have some cover would definitely give us peace of mind.
Thanks,
Jenny
Hi Jenny.
Thanks for your question.
Generally, people who have their diabetes under control can get life insurance. However, depending on the insurer, your husband might have to pay more in premiums to cover the risk.
When your husband applies for a policy, the insurer is likely to assess his risk by inquiring about his BMI, whether he’s a smoker, how he controls his diabetes and whether he suffers any complication because of it. An insurer is also likely to request your husband’s latest HbA1C results.
Regarding your husband’s profession, the insurer might ask him a series of questions about the equipment he uses and whether he gets exposed to high voltage electricity. Depending on your husband’s application and all the information he provides the insurer might attach a loading or exclusion to his policy.
As a first step, please fill in the quote form above or give us a call on 1300 135 205 so a specialist might assist your husband in finding the right cover for your family’s requirements.
Hi,
I am a type 2 controlled diabetic since 2015, 40 years old. 6 feet and 78Kg. I live in New Zealand. unfortunately, there is no insurer here that would be happy to cover an existing diabetic patient.
Will it be possible for me to get a cover from you while I am living here?
Thanks,
Niel
Hi Niel.
As a New Zealand or Australian citizen, you generally must be residing in Australia to be eligible for life insurance from Australian providers. For more information please give us a call on 1300 135 205.
Hello just wondering what life insurance company would be the best for someone with type 1 diabetes I was only diagnosed a year ago and it is under control and even somewhere to get income protection
Hi Cooper
There has been a new reinsurer “Score” who have recently entered the market who in general have a more favourable view on insuring people who have been diagnosed with diabetes. Therefore insurers who have access to this reinsurer would be good to consider however as each insurer can have different underwriting guidelines you are best to complete a pre-assessment by contacting our team. We do not reveal your name to the insurers and anonymously ask up to 10 underwriters from different companies about your unique situation, the insurer then comes back with an indicative offer. Once you have these back you can make a decision on which insurer you would like to proceed with.
If you would like to have the team complete a pre-assessment please have the above info about your diabetes available.
Would it be possible to insure my life, even having been diagnosed with diabetes?
Great question Rida, and a very common one. Generally, it can be difficult to obtain life insurance for people with pre-existing medical conditions such as diabetes but not impossible. There are however many factors the Life Insurer will consider in assessing your application. These are for example your date of diagnosis, your diabetes type, complications you may have experienced due to the diabetes, how is it controlled, how often you see your doctor and your family medical history. Your chances of getting accepted for cover with a reasonable premium will be more likely if your condition is under control and well managed. You are welcome to contact us on 1300 135 205 so we can take you through a Pre-assessment regarding your condition which will enable us to provide you with some outcomes and pricing regarding life insurance.