Sun Life's new term insurance: A breakthrough for diabetics

When considering life insurance in Canada, many individuals look to term insurance for its affordability and straightforward coverage. Term life insurance offers protection for a specified period, ensuring that your loved ones are financially secure should anything happen to you within that term. While this type of insurance has traditionally been challenging for individuals with chronic health conditions like diabetes to get, recent developments in the industry are making significant strides in inclusivity. One such advancement is Sun Life’s new term insurance product, specifically tailored for Canadians with diabetes.

What is term life insurance?

Term life insurance is a type of life insurance policy that covers you for a specific period, usually ranging from 10 to 30 years. If the policyholder passes away during the term, the beneficiaries receive the death benefit. However, if the policyholder outlives the term, the policy expires without any payout. Here are some of the key features:

• Fixed premiums: Premiums typically remain constant throughout the term, making it easier to budget for the long term.
• Death benefit: Upon death, the policy provides a lump sum to beneficiaries, which can be used to cover debts, funeral expenses, or other financial needs.
• Affordability: It is generally more affordable than whole life insurance because of its temporary nature and lack of cash value component.

Can diabetics get term life insurance?

Historically, securing term life insurance has been difficult for individuals with diabetes due to the perceived higher risk. Insurers typically assess applicants based on their medical history, the type and management of diabetes, and any related complications. Poorly managed diabetes or associated health issues often result in higher premiums or outright denial of coverage.

Sun Life’s new term insurance for diabetics

Sun Life has recently launched a groundbreaking term insurance product, aimed specifically at Canadians with diabetes. This initiative is part of a broader effort to provide more inclusive and accessible insurance solutions. Here’s what you need to know about this innovative product:

• Inclusive underwriting: Designed with a better understanding of diabetes, allowing for more favourable underwriting conditions for individuals with well-managed diabetes.
• Affordable premiums: Offers competitive rates tailored to the needs of diabetics, making it a more accessible option compared to traditional policies for those with pre-existing conditions.
• Comprehensive support: Includes access to personalized care programs and educational resources through a partnership with Diabetes Canada, aimed at improving overall health management.

Who is eligible for Sun Life’s term insurance for diabetes? 

Individuals eligible for Sun Life’s term insurance for diabetes include those aged 18 to 65 who have been diagnosed with type 1, type 2, gestational diabetes or pre-diabetes. This policy recognizes the unique needs of those managing these conditions and offers tailored coverage to ensure financial protection. By accommodating a broad range of diabetic conditions, Sun Life aims to make life insurance more accessible and supportive for those who traditionally faced challenges in obtaining coverage.

Advantages of term life insurance for diabetics 

Increased accessibility

One of the most significant benefits of Sun Life’s new product is increased accessibility to life insurance for diabetics. By addressing the unique needs of this group, Sun Life is paving the way for more inclusive insurance practices. This move could encourage other insurers to develop similar products, fostering a more competitive and diverse market.

Improved health outcomes

The integration of personalized care programs and educational resources is a noteworthy feature. These resources can help policyholders manage their diabetes more effectively, potentially reducing complications and improving overall health outcomes. This proactive approach benefits both the insured and the insurer, as better-managed health conditions can lead to fewer claims.

Market innovation

Sun Life’s initiative sets a new standard in the industry, highlighting the importance of addressing underserved segments of the population. This innovation could drive other insurance companies to rethink their products and underwriting processes, ultimately leading to a more dynamic and responsive insurance market.

Drawbacks of term life insurance for diabetics 

Higher premiums

While the new product offers more affordable rates compared to traditional options for diabetics, premiums might still be higher than standard term insurance. Potential policyholders need to weigh the cost against the benefits of having tailored coverage and support.

Underwriting complexity

Insurers face the challenge of effectively underwriting policies for individuals with diabetes. Balancing the need for affordability with the associated risks requires careful consideration and potentially more sophisticated risk assessment tools.

Market saturation

As more insurers introduce similar products, the market could become saturated, which, while offering more choices to consumers, can also complicate decision-making. Therefore, it is essential for potential policyholders to be well-educated about all their options to make the best decision. Consumers should carefully compare products, understand the specific terms and conditions of each policy, and consider working with a licensed insurance broker to navigate their choices effectively. 

The bottom line

Sun Life’s new term insurance product for Canadians with diabetes represents a significant step forward in the insurance industry. By offering more inclusive and supportive coverage, Sun Life is addressing a critical gap in the market. This product not only provides essential financial protection but also promotes better health management through integrated support services. As the insurance market evolves, initiatives like this highlight the importance of innovation and inclusivity, ultimately benefiting both consumers and the industry as a whole.

For Canadians with diabetes looking to secure life insurance, this new product offers a promising option worth considering. Be sure to compare different policies, understand the terms, and choose the coverage that best meets your needs and circumstances.

Also read: 

• How much life insurance do I need in Canada?
• Life insurance for chronic illness – What you need to know 
• Life Insurance vs. health insurance in Canada