Life Insurance And Diabetes

Transcription

1 Life Insurance And Diabetes Prepared By: March 2012 Disclaimer: This information has been produced for anyone with an interest in Diabetes and life insurance in general. Information presented in this document is provided voluntarily as a public service. It is made available in good faith and is derived from sources believed to be reliable and accurate at the time of release (March 2012). Before relying on this information, individual readers should carefully evaluate the accuracy, completeness and relevance of the information for their purposes and should obtain appropriate professional advice relevant to their particular circumstances.

2 TABLE OF CONTENTS Why have life insurance?... 3 Types of insurance... 3 Insurance Company Perspective... 3 What are Insurance Companies worried about? Options for Diabetics... 4 Improve your ability to obtain life insurance... 4 Insurance Companies Compared Type 1 Diabetes... 5 Insurance Companies Compared Type 2 Diabetes... 6 Genetics... 7 Your Rights & Legal Aspects of Insurance... 7 Complaints... 7 Diabetes Insurance Report Request... 8

3 Why have life insurance? Like anyone else, people living with Diabetes can have a mortgage, a partner, children, run businesses, or if single, value their independence. It is well known that people buy life insurance because they love someone and it is often a life event such as marriage, buying a new home, having children, or the death of a loved one that instigates the purchase of insurance. Types of insurance Life insurance is a broad term that covers the below types of policies. Death Insurance: pays a lump sum upon the death. Income Protection: pays up to 75% of your monthly salary if you are incapacitated and hence unable to work due to an illness or injury Trauma Insurance: pays a lump sum upon diagnosis of a chronic illness or injury with up to 58 conditions covered including Diabetes and complications arising from Diabetes. The most common claims are for cancer, heart attack and stroke. Total and Permanent Disability (TPD): pays a lump sum upon the insured being as not being able to perform their Own or Any occupational duties. Insurance Company Perspective Insurance companies are for profit. Like any other private or public company, they have shareholders expecting a return on the investment. Insurance companies do not exist to provide a community service but instead have strict guidelines and policies that decide who they will and will not accept as clients. Generally speaking, applicants with a clean health history are accepted with open arms, but those with a health history such as Diabetes are often scrutinised or declined cover outright. What are Insurance Companies worried about? Diabetes is a major concern because of the significant health complications: Over two-thirds of all cardiovascular disease deaths occur in people with diabetes or pre-diabetes; Diabetic blindness is the leading cause of blindness in Australians aged under 60; About 30 per cent of people with diabetes will develop kidney disease; Diabetes is the sixth highest cause of death by disease in Australia. With over 1 million Australian s now thought to be living with Diabetes it is the fastest growing chronic illness in Australia. Half of those people living with Diabetes are not aware they have the condition therefore when filling in an application don t disclose it on their application form.

4 3 Life Insurance Options for Diabetics Item Cause of Death GOOD BETTER BEST Accidental Death Only Insurance Accident only Guaranteed Insurance Any cause, but there may be a waiting period from 1 to 5 years for pre-existing conditions. Underwritten Insurance Any cause Sums insured available Limited Limited Unlimited Disclose diabetes to insurer Yes No Yes Medical tests required No No Possibly Affordability Most affordable Least affordable Affordable Example: $200,000 cover, 45 year old, female, non smoker $320 1 $ $ Notes: 1. Clearview quote; 2. Virgin Life quote; 3. AIA quoted with 100% loading Improve your ability to obtain life insurance Eat a healthy and well balanced diet Exercise regularly Get regular checkups and follow the advice of your GP Keep accurate records of your medication and results of tests Being overweight increases your risk two-fold, while obesity increases your risk four-fold. Abdominal obesity is most detrimental (waist measurement classified as high risk: over 110cm for men, over 100cm for women), therefore maintaining a healthy well balanced lifestyle including diet and exercise is the best possible way of being able to obtain insurance.

5 Type 1 Diabetes - Insurance Companies Compared Insurer Policy Loadings Death Total & Permanent Disablement Trauma Income Protection AIA Yes Yes No No Accident only (best scenario: 50% loadings) AMP Yes Yes Yes Yes Yes Asteron Yes Yes No No No AXA Yes Yes No No No BT Yes Yes Yes Yes Yes Clearview Direct* No Yes. Conditions: 1) Age >20 2)Diagnosed in <10 years No No No Clearview Retail CommInsure Yes Yes No No Accident only (best scenario: 50% loadings) Macquarie Yes Yes No No No Metlife Yes Yes No No No MLC Yes Yes No No No OnePath Yes Yes No No No TAL Yes Yes No No No Zurich Yes %. Cover decline if >150% Yes No No No Notes: *MADI is a strategic partner of Clearview so that customers receive 10% off their premium and an additional 20% sum insured paid if death by accident.

6 Type 2 Diabetes - Insurance Companies Compared Insurer Policy Loadings Death TPD Trauma Income Protection AIA Yes Yes No No Accident only (best scenario: 50% loadings) AMP Yes Yes Yes Yes Yes Asteron Yes Yes No No No AXA Yes Yes 1) age>45 and 1) age>50 3) min wait 90 days BT Yes Yes Yes Yes Yes Clearview Direct* Clearview Retail No Yes No No No Yes Yes No No No CommInsure Yes Yes 1) age>45 and No Macquarie Yes Yes Yes Yes No Metlife Yes Yes No No No MLC Yes Yes 1) age>45 and 3) min wait 90 days OnePath Yes Yes Yes Yes Yes TAL Yes Yes Yes Yes Yes Zurich Yes %. Decline if >150% Yes. Conditions: 1) age>50 Notes: *MADI is a strategic partner of Clearview so that customers receive 10% off their premium and an additional 20% sum insured paid if death by accident.

7 Genetics People who have parents or siblings with diabetes are two to six times more likely to develop Type 2 diabetes. Life insurers may request that all existing genetic test results be made available to the insurer for the purposes of clarifying the risk, as per the Insurance Contracts Act of 1984, which places a duty to disclose to the insurer every matter that is known to the insured. Recently this proviso was amended to accommodate medical advancements where if the genetic test was performed purely to assess how a person will respond to a particular type of medication, or the test was performed purely for research purposes where the person undergoing the test does not receive the result, then the genetic testing does not have to be disclosed. Your Rights & Legal Aspects of Insurance We highly recommend you read the information contained on the website Complaints If you have a complaint about an insurance policy or claim, or wish to appeal a decision made by an insurance company there are a few steps you should follow: Step 1: Lodge a complaint with the insurance companies Complaint Handling Division directly. Each insurance company is required by law to have such an area. Step 2: If Step 1 does not lead to a satisfactory resolution of your complaint, contact the Financial Services Ombudsman to lodge your complaint on either their website: or by phone on

8 Diabetes Insurance Report Request Please complete and return this form to: FAX: or MAIL: Unit 18, 328 Reserve Road, CHELTENHAM, VIC 3192 or We ll send you a report within 2 business days or call us on APPLICANT INFORMATION First name Surname D.O.B. Address Suburb State Postcode Contact phone PERSONAL DETAILS Male/Female Height Weight Smoker Y / N Occupation TYPE OF INSURANCE REQUIRED Death TPD Trauma Income Protection Funeral Business Expenses Have you ever been declined insurance cover? Y / N Reason: DIABETES INFORMATION Type of diabetes: Type 1 Type 2 diet controlled Type 2 oral medication Date : / / Date and result of last: Item Date Result HbA1c / / Blood sugar level / / Doctor/Specialist visit / / HEALTH ISSUES Have you ever had any of the following health issues: Item Tick Date Details Loss of sight / / Kidney problems / / Cardiovascular / / High blood pressure / / Raised cholesterol / /

9 Ph: MEDICATION Please list all medication you are currently taking: Medication Details Dosage OTHER HEALTH ISSUES Please describe all other health issues you have: Health issue Date Diagnosed Date - no more symptoms Details AUTHORISATION I authorise 'Make A Difference Insurance' to provide the personal information contained on this form to Insurance Companies on a pre-assessment basis to ascertain the likelihood of an insurance company accepting me as a client. I understand that this will be an indication only and not an application for insurance. Signature Date Full Name