Seeking Insurance For Diabetics? Do Your Homework

Our experience has been that the more information the agent can obtain from the client about his/her diabetes, the more accurate a preliminary quote will be from the in-house underwriter. For example, if the agent first completes the quote form mentioned above before running any illustrations, that will help make the illustrations that are run later on be much more credible to the client.

Once the brokerage receives the complete application, medical records will be ordered from the clients doctor(s) as well as the pertinent exam and labs.

Armed with this information, the in-house underwriter can go over the medical information and pull out the most important facts as related to the clients medical history. This is important, because then a case can be made in the clients favor to the insurance carrier.

Underwriters are extremely busy these days, sometimes having to look at 100 files a day. If they can be helped by a cover letter detailing the medical aspects of the case, and a well-put-together case with everything that is needed included, they may be more likely to view the case with a benevolent eye.

Now, lets talk about the 2 types of diabetes. Type I, formerly called “Juvenile Diabetes,” usually begins in childhood but not always. It is the least common type of diabetes and the least likely to be inherited. It occurs when insulin-producing cells, called “islet cells” within the pancreas stop producing insulin. There is no treatment but to replace the insulin by injection on a daily basis. These diabetics usually are highly rated because of the length of time they have had the disease and therefore they often suffer from complications. Common complications involve the eyes and kidneys.

Type II diabetes, formerly called “Adult Onset Diabetes,” generally occurs after age 40, although recently there have been accounts of people in their teens being diagnosed. The typical Type II diabetic is generally overweight and can be treated with diet, oral medications, insulin or a combination of all three. These diabetics often have a higher incidence of heart disease, stroke and non-healing wounds of feet and legs. They often are helped with weight loss and exercise.

Diabetics are rated by underwriters based on several criteria: age at onset; type of treatment; control (Hemoglobin A1-c or glycohemoglobin results) and presence or absence and degree of complications; and compliance with the physicians instructions, including regular follow-up.

As you might imagine, based on all the criteria, a diabetic can be rated anywhere from standard (sometimes even preferred!) to decline. This is why it is so important to get the facts before submitting the application. You will impress your client with your thoroughness and foresight while getting the best rate possible with the right company.

Speaking of the right company, what company should you go to? Whose underwriting department looks most favorably on diabetics, yet has the premium structure and products that the client needs? Your brokerage will help you with this decision. It takes into account the underwriting, the product, age of the client, etc., to come up with the company that will serve the clients needs the best.

Every insurance companys underwriting department has its “niche” or area of expertise when it comes to impairments. A good brokerage makes certain it knows which carriers do the best with diabetics as well as other impairments.

is the agency principal with CPS/Nevada Insurance Services, Las Vegas, Nev. His e-mail is [email protected].

Reproduced from National Underwriter Edition, November 11, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.