For more information about obtaining affordable life insurance with HIV, call the insurance specialists at LifeInsure.Com at (866) 868-0099 during normal business hours, or you can contact us through our website at your convenience.
It wasn’t that long ago when individuals who were HIV-positive could forget about getting life insurance. It’s interesting, however, that the folks who understand the need for life insurance the most either face stiff challenges buying it or can’t get it at all.
The good news is that a few life insurance companies have opened up somewhat for individuals who have tested positive for HIV.
The facts and statistics regarding people in the U.S. living with HIV are staggering when compared to many other life-threatening diseases. In fact, according to HIV.gov, currently, one in seven people in the U.S. are living with HIV and may be unaware of their infection. Here’s the current data:
Because many people living with HIV are living a fairly long and normal life, several life insurers are willing to offer coverage to applicants who are HIV positive.
However, be prepared to provide additional information during the underwriting process and be prepared to pay a significantly higher rate when the policy is issued.
Keep in mind that policies are offered on a case-by-case basis after the underwriter has a complete picture of an applicant’s health situation and is provided evidence that all necessary steps are being taken to manage the disease.
Although several life insurers are willing to consider applicants who are HIV positive, most will not offer traditional life insurance policies like Term or Universal life during the COVID-19 pandemic.
It’s also important to note that companies that normally offer traditional life insurance to applicants who’ve been diagnosed with HIV typically will not consider an applicant who was diagnosed less than a year before applying for coverage.
Moreover, your life insurance rates will be predicated on underwriting guidelines, which are used to determine which rate class an applicant qualifies for.
Most insurance companies offer several rate classes, with the preferred plus having the lowest rates and standard smoker being one of the highest.
The most common rate classes that life insurers will offer are:
Applicants who have tested positive for HIV will typically be rated Substandard. No matter how well an applicant is managing his or her HIV, a person who is healthy and doesn’t have HIV is going to be offered lower rates than an applicant diagnosed with HIV.
Although several companies will consider a life insurance policy for an HIV-positive applicant, the underwriting process is similar for all of them.
When an applicant applies for life insurance and discloses their HIV-positive status, the company will require a supplement to the standard application that effectively drills down into the nature of the diagnosis and the treatment plan devised to manage the disease.
The typically required information will include but not limited to the following:
Rest assured that once the HIV-positive diagnosis is disclosed, the application process will take longer since medical records and physician statements will be ordered, as well as reports from any in-patient facilities where you, as an applicant, may have received treatment.
However, if you elect to purchase final expense insurance (whole life insurance with a low coverage amount) or Guaranteed Issue life insurance (no medical underwriting), the application process will be reduced from weeks and months to just a matter of days.
Underwriting a life insurance policy is a method to calculate the mortality risk each applicant presents to the insurance company. When an applicant discloses that they are HIV positive, the insurance carrier will order many tests and reports to determine the risk to the insurer.
HIV-positive applicants should expect the underwriter to inquire into at least five areas concerning the HIV diagnosis:
There are three stages associated with HIV.
Although underwriting guidelines vary by insurance companies, the carriers who will consider an HIV-positive applicant require that the applicant be no older than 50 years old.
Rarely does an HIV-positive applicant present with only the HIV diagnosis, so the underwriter will inquire about any other health conditions, both currently and historically.
Most underwriters will also be concerned about any lifestyle issues that might be disclosed on the application and whether the applicant is well enough to hold down a job and take care of the activities of daily living.
Even though an HIV-positive applicant cannot be cured of the virus, the underwriter will request evidence that the applicant is managing the illness by taking the prescribed antiretroviral medications and regularly having CD4 levels checked. Antiretrovirals are showing very promising results that treatment will slow or even stop the virus from becoming full-blown AIDS.
If a policyholder is diagnosed with HIV after a policy is issued, the insurance carrier will honor the terms and conditions of the policy.
However, life insurance policies generally include a 2-year contestability period, which allows the insurer to delay paying a claim for death from natural causes during that period while they investigate the underwriting process and answers you provided on the life insurance application.
If the insurer discovers that the policyholder withheld or omitted any medical information on the insurance application, they will likely refuse to pay the claim and will return the premium paid to the insured’s estate.
Most insurance professionals consider the contestability period as a clear threat that an applicant should not lie, withhold information, or omit information on the insurance application.
There are several options for obtaining life insurance if an applicant is unable to qualify for traditional life insurance because of an HIV diagnosis.
Final expense insurance, which is generally purchased to cover funeral and burial expenses, may be a very good alternative. Since final expense insurance is targeted at seniors, the insurance companies have already liberalized the underwriting guidelines to accommodate seniors who may have one or more health issues.
The drawback with final expense insurance is that most companies will only offer it to applicants age 50 or higher, and since it is whole life insurance, the rates are much higher than term life insurance.
Since insurance companies do not consider an applicant’s health or health history in the underwriting process, virtually anyone who is of eligible age, not in long-term care or hospice facility, and living will qualify for guaranteed issue life insurance.
The drawbacks of a guaranteed issue are that since the insurance company is accepting an unknown health risk, the insurer will place the following restrictions on the policy:
Although term life insurance is priced much lower than other types of coverage, some companies will consider an applicant who is HIV positive as long as a treatment plan has been implemented and is being adhered to by the applicant, and the CD4 levels are acceptable to the underwriter (500 or higher).
If an HIV-positive applicant cannot qualify for traditional life insurance or is too young to purchase guaranteed issue life insurance, he or she should see if their employer offers group life insurance.
If so, a policy should be purchased as soon as possible because group life insurance policies do not consider medical underwriting in order to issue a policy.
Although coverage is generally capped at a multiple of two or three times your salary, and the coverage is not portable, group life insurance is a solid solution for buying coverage when you cannot get it elsewhere.
Many employers offer voluntary insurance products like life insurance, disability insurance, and critical and chronic illness plans.
Not only is voluntary life insurance very affordable, most insurance companies that offer voluntary life insurance also have little to no medical underwriting requirements.
This means an employee can purchase life insurance at very affordable rates and qualify for coverage that they couldn’t get in a traditional life insurance policy.
This is an insurance policy that typically pays out a lump sum if the applicant is diagnosed with a covered critical illness.
Although there are medical underwriting requirements, the requirements are fairly liberal, and as such, an HIV-positive applicant has a good chance of qualifying for coverage.
Although there are hundreds of life insurance companies operating in the United States, only a select group will consider an HIV-positive applicant for coverage.
The companies that do will have strict underwriting guidelines. However, applicants who can demonstrate that they are on a regimented treatment plan and are managing the virus have a good shot of finding life insurance coverage at affordable rates. Several insurers offer traditional life insurance for HIV-positive applicants who demonstrate that they are properly managing the disease. A few companies offer guaranteed issue policies for applicants between the ages of 50 and 85.
When applying for fully underwritten life insurance (medical exam required), the blood drawn will be tested for a variety of antibodies, including HIV.
Since life insurance rates are based on primarily on age and health, an applicant with HIV presents a higher risk, and as such, the applicant will be charged a higher premium than a person without HIV.
If your employer offers group life insurance, the policy is not typically underwritten, so your HIV status does not have to be disclosed.
With any life insurance product, the rates are based on the health classification of the applicant. Individuals who are shopping for life insurance with HIV will pay significantly more for their life insurance than an individual without HIV.
For more information about obtaining affordable life insurance with HIV, call the insurance specialists at LifeInsure.Com at (866) 868-0099 during normal business hours, or you can contact us through our website at your convenience.
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