The Financial Implications of Diabetes 

Diabetes Mellitus (DM) is Australia’s fastest growing chronic disease and is a complex disorder of carbohydrate, protein and fat metabolism. The disease is marked by high blood glucose levels resulting from defective insulin production or action or both. It is estimated that more than 1.7 million Australians have diabetes. Alarmingly, less than half of these have been diagnosed.

There are several types of diabetes, with different causes and clinical histories. Among the most common are Type 1, Type 2 and gestational diabetes.

• Type 1 Diabetes results from the failure of the pancreas to produce enough insulin. Around 10-15 per cent of all cases of diabetes are Type 1 and the disease commonly presents in childhood or young adulthood.
• Type 2 Diabetes is a condition in which the body either makes too little insulin or cannot properly use the insulin it makes to convert blood glucose to energy. Type 2 diabetes typically develops with increasing age, but is beginning to present more frequently in children, particularly in obese adolescents. Many individuals with Type 2 eventually require insulin treatment for the optimum control of high blood glucose.
• Gestational Diabetes is a form of diabetes that may develop during pregnancy ??in women who have no previous history of diabetes. The condition usually disappears after the baby is born, however, it can recur in later pregnancies. Gestational diabetes is also a marker of an increased risk of developing Type 2 diabetes later in life.

Risk factors
Type 1 diabetes is believed to be caused by particular biological interactions and exposure to environmental agents among people genetically predisposed to diabetes. Several behavioral and modifiable risk factors play a role in the onset of Type 2 diabetes, including obesity, physical inactivity and an unhealthy diet. High body mass, physical inactivity and metabolic syndrome (a combination of risk factors including high blood pressure, high blood sugar, an abnormal cholesterol level and unhealthy abdominal fat) are the main contributors to Type 2 diabetes.

Complications
Diabetes is associated with a range of complications including coronary artery disease, diabetic neuropathy, amputation, renal failure and blindness. Being overweight or obese increases the risk of diabetic complications such as coronary heart disease (CHD), stroke and peripheral vascular disease. Without adequate treatment and control, diabetes can lead to disability, a poor quality of life and premature death.

Treatment
The major goal in treating diabetes is to minimise any elevation of blood sugar (glucose) without causing abnormally low levels of blood sugar. Type 1diabetes is treated with a combination of insulin injections, exercise, and diet. Type 2 diabetes is treated in the first instance with weight reduction, diet, and exercise. If these measures fail to control the elevated blood sugar levels, oral medications are used. If oral medications are still insufficient, treatment with insulin injections is considered. The control of diabetes starts with a healthy lifestyle regardless of the medications being used. If people with diabetes strictly control their blood sugar levels, complications are less likely to develop or will develop at a much slower pace. It is advisable for people with diabetes to not smoke and to only consume moderate amounts of alcohol.

The key to prevention
Type 2 diabetes is largely preventable. Overweight and physical inactivity are the main modifiable risk factors responsible for Type 2 diabetes. A significant change in lifestyle such as weight control by eating properly and exercising adequately, can often effectively prevent the development of diabetes. It is estimated that up to 60 per cent of Type 2 diabetes can be prevented.

Source: Diabetes Australia, Diabetes Australian Facts 2008

Insurance with Diabetes
Type 1 and type 2 diabetes are treated differently so let look at them separately.

Type 1 Diabetes
Few domestic insurers have only recently considered offering Income Protection, Life Insurance and in some cases Trauma plus Total and Permanent Disablement (TPD). These types of insurance are obviously subject to a satisfactory underwriting process prior to cover being offered, however, Momentum Wealth has placed cover for a client who had previously been “uninsurable.” One of the key restrictions the insurers are placing is that insurance cover has a limited term which varies from case to case. One of the key assessment criteria is that you have been diagnosed later in life or only recently been diagnosed with type 1 diabetes and have no other contributing health factors.

Type 2 Diabetes
There are no current domestic insurers willing to offer insurance for full cover, however, there are a few domestic insurers willing to offer Accident Only insurance coverage on a limited range of products such as Life Insurance and Income Protection. In some Trauma insurance contracts and cases if you held Trauma Insurance and were diagnosed with adult insulin-dependent diabetes, you may qualify for a partial benefit and/or payment. The key message here is to ensure that you have adequate insurance coverage in place before you are diagnosed due to the fact that insurance can be very hard to obtain, if any, once you are diagnosed with diabetes. The second key message is that there may be cover available to you, however, if you never ask you will never know.

For more information on how Momentum Wealth can assist you with your Risk Insurance needs, contact Justin McManus on 1-800-000-159 or email info@momentumwealth.com.au

Justin McManus is a representative of AXA Financial Planning Limited, ABN 21 0005 799 977 AFSL 234663. This information has been prepared without taking account of your objectives, financial situation or needs. Before acting on this information you should consider its appropriateness, having regard to your objectives, financial situation and needs.