Looking to insure Type I Diabetes

Whilst I was attending a meeting on the general subject of insurance and life assurance several days ago, and interesting question came up: Is it possible to get a mortgage and therefore get a house if you have Type 1 Diabetes?

It’s an interesting question because Type 1 Diabetes is  related to shorter life expectancy – so 20 years historically, but not the life expectancy is getting longer.

So, how will a bank or building society who are lending you money over 25 years to buy your house going to react when they hear you have Type 1 Diabetes and your life expectancy is significantly shorter than it would have been? Will they even give you a mortgage?

How to get a mortgage with Type 1 Diabetes

We look to life assurance to help us here. There are many different types of Life Assurance and depending which company you go with, you may have cover or you may not.

This has caused a new type of life cover to arise – critical illness life assurance. This is where your condition is added to the Life Cover and you pay a premium for the privilege. But at least you are now covered and can go and get that mortgage and buy that house.

An example: Bill aged 30 has Type 1 Diabetes and wants to buy a house. His current life assurance monthly premium is £25. Some life assurance companies don’t want to know anymore and will not insure him. Others, will add £15 per month onto his life cover, which now costs £40 instead of £25, but Bill now has a mortgage and a house.

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