PayingTooMuch.com can now offer Life Insurance rates with up to a 40% discount for diabetics, with an underwriting decision in less than an hour!
Royal London has launched its long-awaited life insurance for people with Type 1 or Type 2 diabetes, and PayingTooMuch.com is delighted to be one of just a small number of companies that have been chosen to offer this revolutionary product before it is rolled out nationally.
How does it work?
The policy has the flexibility to reduce premiums by up to 40% depending on how well you are managing your diabetes, by sharing your HbA1c test results on an annual basis. If you provide annual results which show the diabetes has improved, the premium could be reduced.
Premiums are guaranteed never to rise higher than the starting premium.
We will ask some initial qualifying questions to assess whether Royal London can offer cover, then some additional questions will be asked about the diabetes and any other conditions before giving an automatic decision. If you’re happy to proceed with the premium offered, you will simply be asked to produce evidence of your HbA1c within three months of the application being completed.
Using a real time robo-underwriting process it is now possible to get cover within as little as an hour, rather than the traditional underwriting process which can take up to several weeks to complete.
The cover will commence immediately at the price quoted but in certain cases, the insurer will need to then ask for further medical evidence. If they do find further complications however, you will have the option to reduce the sum assured rather than increasing the premium.
Lifestyle changes
Controlling diabetes can be difficult because changes need to be made to your lifestyle including a healthy diet, giving up smoking (if a smoker) and taking more exercise. These lifestyle changes can be difficult to achieve and maintain, so there are two big reasons to consider buying Life Insurance:
- It will encourage you to embrace getting your diabetes under control, and
- You will be rewarded financially for managing to reduce your HbA1c reading.
There are an estimated 4.5 million people living with diabetes in the UK*. This includes 1.1 million people who are unaware that they have diabetes as it has not yet been diagnosed**.
Unfortunately, it’s predicted the number of people diagnosed with diabetes over the coming years will increase. However, with better understanding of the condition and advancements in medical science that number can hopefully be kept down.
Rob Dales, life insurance expert at PayingTooMuch.com says “with this ever-increasing number of diabetics, it’s crucial customers have a fair and current underwriting system which will allow the average person to get the valuable Life cover they need for their family, mortgage and for their peace of mind at an affordable price.
I speak to people with diabetes daily who feel they are unfairly treated, but with this new product, diabetics will be rewarded for keeping their diabetes under control”
Diabetics who were previously declined or had an increase in their premium which wasn’t affordable can now review their insurance with a higher likelihood of being accepted within their budget.
The table below shows the savings a diabetic can make by using the new Royal London Product:
| Level of cover | New Diabetes Rates | Traditional Rates |
| £100,000 | £11.48/month | £12.63/month |
| £150,000 | £14.96/month | £17.22/month |
| £200,000 | £18.44/month | £22.34/month |
| £250,000 | £21.92/month | £26.40/month |
| £300,000 | £25.40/month | £30.77/month |
(Based on a 40 year old male/female with a term of 20 years, non-smoker with well controlled Type 2 diabetes and no other conditions).
For any queries or to obtain a quote, please contact Rob and the life insurance team on 01243 219972
* Quality and Outcomes Framework (2014/15), Diabetes Prevalence Model 2016 (Public Health England) and 2012 APHO Diabetes Prevalence Model.
** This figure was worked out using the diagnosed figure from the 2014/15 Quality and Outcomes Framework, the 2016 Diabetes Prevalence Model and the 2012 AHPO Diabetes Prevalence Model. A figure for Northern Ireland was not predicted by the AHPO model, so undiagnosed prevalence for Northern Ireland was extrapolated on the % undiagnosed figure for Scotland.
