Do you have diabetes and need life insurance to meet the SBA loan requirement? You are not alone. The good news there a select few life insurance companies that offer the most favorable underwriting guidelines and rates for diabetics needing life insurance to secure a SBA loan. By choosing the right carrier you will receive the best rates and health class which can save you thousands to potentially tens of thousands of dollars over the course of the policy.
There are over 700 life insurance companies in the U.S. so knowing which company to choose and where to start can seem overwhelming. The good news this article will give you everything you need to know to receive the best rates if you have diabetes and need life insurance to qualify for an SBA loan.
SBA Loan Life Insurance Underwriting Diabetes
There are a few main factors that will affect your life insurance rates with diabetes or pre-diabetes for SBA loans. These include:
- Age of diagnosis
- A1c reading
- Smoker or non-smoker
- Type I or Type II diabetes
There are even a select few life insurance carriers where you may qualify for a standard plus health category if you were; diagnosed over the age of 50, have an A1c of less than 7 for the past 6 months and meet the build chart guidelines. Common with diabetes, doctors often prescribe blood pressure and cholesterol medication, which often will not affect the underwriting. Other health issues that can affect the rate is previous heart issues, stents, sleep apnea, etc. The key is to work with a broker who can shop the market to find the life insurance company that will offer the best underwriting for your specific health profile.
SBA Loan Life Insurance Underwriting Diabetes- Exam vs. No Exam
With the SBA loan life insurance requirement, often time is of the essence. There are a few carriers that offer no exam life insurance with diabetes, typically the maximum is $500,000. If you choose to take the exam you can qualify for much more in coverage, usually $10 million or more. Also, the rates are typically much lower if you take a paramed exam versus choosing the no exam route. Compare both options and choose the best one for you.
Life Insurance SBA Loan Rates with Diabetes
Below are the rates for a 55-year-old male, 6’00’’ 230 lbs, type II diabetic, diagnosed at age 50, last A1c 6.2, taking Metformin, blood pressure and a cholesterol medication. Non-smoker with a paramedical exam.
$1,000,000 10 Year Term= $189 month
$750,000 10 Year Term= $159 month
$500,000 10 Year Term= $108 month
$250,000 10 Year Term= $58 month
These rates are based on the standard plus health class. Depending on the carrier and other health factors many will qualify for the standard health class.
Best SBA Loan Life Insurance for Diabetics- Wrap Up
If you have type II diabetes and are taking Metformin, insulin or another medication to treat your diabetes, then you still will likely qualify for life insurance for the SBA loan requirement and at a good rate if you choose the correct company. Once your policy is inforce, then you complete the collateral assignment form and you are all set.