Aspects of the invention include methods of predicting a subjects susceptibility to developing type 2 diabetes. Embodiments of the methods include obtaining a sex hormone-binding globulin (SHBG) level value for the subject, e.g., by detecting a SHBG plasma concentration and/or a SHBG polymorphism phenotype, and predicting the subjects susceptibility to developing type 2 diabetes from the obtained SHBG level value. Also provided are devices and kits that find use in practicing embodiments of the methods. In addition, methods of treating a subject for type 2 diabetes and/or preventing the onset of type 2 diabetes are provided.