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- How to get life insurance when you’re HIV-positive
- December 1st, 2011 8:08 AM
Mckeown adds that from an insurance company’s perspective, asking a potential policyholder to take an HIV test is really no different than asking someone about his or her family health history, what types of prescriptions they take daily, or if they smoke.
If you are able to get a simplified issue insurance plan, they have a limited face value amount, typically $150,000 to $250,000 on the high-end of the spectrum.
A more viable option is purchasing a “guaranteed issue” life insurance plan. When a policy is considered “guaranteed issue” this is the maximum amount of coverage allowed to an individual without a medical evaluation. Anyone can purchase a guaranteed issue plan since they do not require a medical exam, but they are usually nuts and bolts policies that only provide a death benefit. The death benefit is generally $20,000 or less and if you die within the first two years after you buy the policy, your loved ones could receive nothing.
There are also small group plans to consider that are essentially employer-sponsored specialty plans that cover key employees at a company.
Pinney recalls a situation where a group of partners at a firm requested a guaranteed issue group plan that would cover all the senior and junior partners at the firm. One of the individuals was HIV-positive and the group managed to negotiate a policy that provided over a million dollars in life insurance to each person in the group.
While it’s clear that this method can work, Pinney says that because of the stigma attached to people living with HIV, this is primarily the reason why most employees won’t suggest this type of coverage to their employer.
While someone with HIV may be able to get a life insurance policy from an insurance company that specializes in high-risk cases, it’s certain that it will most likely be a costly policy with a graded benefit. For example, a 40-year-old HIV-positive male can get a $50,000 whole life policy, but he would pay a high annual premium of $2,600.
“There are very few companies, maybe three or four that offer policies for people with HIV,” explains Pinney. “What they amount to is a guaranteed issue whole life policy with a graded death benefit or a benefit that increases gradually with age and eventually levels off during the life of the policy.”
Still, Pinney says that if you die during the first, second or third year of the policy you may only receive your premiums and dividends with interest, other companies may only payout a specified percentage of the benefit amount if you die within that timeframe.Pages: 1 2 3 4 5
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