|
 The
Companion Advisor: Insurance
Tips on Travel, Health and Life Insurance and
Diabetes
By Robin Ingle, Ingle Insurance International
June 2005
A Companion Advisor Article
Having diabetes may mean you will experience greater difficulty obtaining
some forms of insurance, or will face higher premiums, or both. However
there are things you can do to improve your opportunities for obtaining
the insurance you need at a price you can afford. The Canadian Diabetes
Association offers these insurance tips for people with diabetes.
Stay in good control
Having your diabetes in good control – keeping your blood glucose
levels in your target range and keeping your blood pressure and cholesterol
levels in check – may help you to demonstrate that your condition,
while pre-existing, is stable and well managed. Healthy eating, active
living and managing your diabetes ABCs (A1C or your 3-month average blood
glucose levels, blood pressure and cholesterol levels) will help keep
your diabetes in good control and prevent or delay the health complications
associated with the condition. By keeping your diabetes in good control,
you can avoid additional medical complications that might make you ineligible
for an insurer’s stability clause.
Ask about pre-existing conditions
Most insurance companies have clauses regarding pre-existing conditions
(such as diabetes). Travel insurance policies will cover most pre-existing
conditions, with some coverage limitations and stability requirements.
If you have had changes in your medical conditions, ask about ‘medical
underwriting,’ which involves a medical form to be completed by your
physician. The insurance company will determine the level of benefits
and price based on the medical information provided.
Be honest
Answer all questions about your medical condition honestly. If you withhold
information about an illness or medication, any subsequent claims may
be denied.
Understand the policy
Read the policy wording carefully. Make sure you understand the limitations
and exclusions of your coverage.
Ask questions
If you do not understand the policy wording, or are unsure about specifics
of your coverage, call your insurance agent. Don’t be afraid to ask
for clarification about policy details. If you do not understand some
or all of your policy, call and ask for an explanation. Try to get your
answers in writing.
Travel Insurance:
- Plan ahead: Buy your travel health insurance before you leave
the country. Once you are traveling, you may not be able to find the
appropriate coverage. Trip cancellation insurance must be purchased
within 48 hours of the purchase of your tour, hotel or tickets.
- Check your provincial coverage: Most provincial health plans
only cover you for the first three to six months that you are out of
the country. If you are leaving the country for an extended period of
time, you may need to extend your provincial coverage. Provincial government
health insurance plans will only cover a small amount of your emergency
medical bills when you are traveling outside Canada. Travel insurance
is necessary.
- Understand that travel insurance is not available if your diabetes
(or other medical conditions) is unstable (i.e. if your condition, treatment
or medication has recently changed.) Work with your healthcare professionals
to stabilize your diabetes. The benefits of doing so go well beyond
access to travel insurance – well-managed diabetes can help prevent
or delay serious health complications associated with the condition.
Individual Health Insurance:
- Benefits: This kind of insurance provides for benefits not
covered by a provincial government health insurance plan such as prescription
drugs, dental, accidental death, life and disability insurance. These
benefits may be purchased as a bundled product or as individual options.
- Additional coverage: Purchasing individual health insurance
is an option if you wish to supplement the benefits provided by a provincial
government health insurance plan.
- Pre-existing medical conditions: Unfortunately, individual
health insurance plans will not cover pre-existing health conditions,
such as diabetes or heart disease. This is standard within the industry.
They will provide coverage for new illnesses and for accidents. Small
amounts of coverage may be available if you purchase a guaranteed life
individual health product, but the premium may be larger than the benefit.
Employer Group Health Benefits:
- Benefits offered may include extended health benefits, private/semi
private hospital room, as well as coverage for dental, specialists,
drugs, therapy, pre-and post- natal as well as optional life, disability,
and other benefits.
- Pre-existing medical Conditions: Generally, group health insurance
plans will provide coverage for pre-existing health conditions.
Life Insurance:
Life Insurance provides for a lump sum payout to a policy holder’s
heirs, estate or designated individual or charity when the policy holder
dies. Most people will purchase life insurance as part of estate planning,
to ensure their family is not left with a financial burden or to allow
their family to survive financially with as little a disruption as possible.
If a person has type 1 diabetes, and is under 20 years of age, the options
for life insurance are limited. Companies will provide coverage, but it
will be rated (meaning the premiums will be higher) and it will depend
on the individual’s health condition. Once the person reaches age
20, however, more options become available, and it may become easier to
get life insurance.
If a person has type 2 diabetes, and manages the condition well, he or
she should not have a problem getting life insurance, though sometimes
the cost will be higher.
- Term Life Insurance: Offers life insurance coverage for a specific
period, such as a 10 or 20 year term or coverage for up to age 65
- Whole Life Insurance: Offers a level premium over a designated period
of time, building up savings through cash value on the policy and coverage
for the life based on the policy limit (example: $250,000, $500,0000,
or $1,000,000). The cash value is the amount that you may exchange your
policy for if you decide to cancel and take the savings.
- Guaranteed Issue Life Insurance: Offers life insurance without medical
questions or with a few straightforward medical questions. Usually this
type of insurance has a low benefit limit.
- Universal Life Insurance: Offers the flexibility of a tax advantage
or an investment component.
*
* *
|
|
Use this link to load a printer-friendly
version of this document. |
Have a question regarding this article? Use our feedback
form to send us a note.
©
, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.
(905)844-7700
|
