Staff Writer, Life Quotes, Inc.

Although there have been medical advancements that have helped to prolong the lives of HIV patients, finding life insurance coverage for HIV infected individuals continues to be elusive. In recognition of World AIDS Day on December 1, 2011, Life Quotes, Inc. takes a look at life insurance options for those living with HIV.

According to the most recent statistics by The Henry J. Kaiser Family Foundation, the number of new HIV infections in the U.S. reached 56,300 in 2006.  The number of people living with HIV/AIDS was 1.1 million, with 468,000 of those individuals living with AIDS. The U.S. Department of Health and Human Services reported in 2007, that the largest number of new HIV/AIDS diagnoses for persons aged 40 to 44 accounted for 15 percent of all HIV/AIDS diagnoses in that year.

Respectively, the use of antiretroviral (ARV) Therapy or highly active antiretroviral therapy (HAART) such as protease inhibitors with a combination of other HIV drugs have extended the life of those living with HIV by slowing the progression of the disease to full-blown AIDS.  A study by the National AIDS Treatment Advocacy Project in New York and the ATHENA National Observational Cohort Study in February 2010 found that the average life expectancy of people living with HIV has been extended from seven years (before 1995) to 24 years — if they follow the proper drug therapy regimen. This includes those who take their medications on a regular basis and maintain a healthy lifestyle.

When it comes to purchasing life insurance, there are a number of policy choices available that can match your needs without hurting your pocketbook.

Life insurance companies price their policies very competitively, so if you do your homework and keep your options open, finding a good deal on a life insurance policy shouldn’t be hard. Here are some common tips you can use to reap savings on life insurance.

Don’t purchase the wrong policy. Choosing the right policy that fits your needs is more important than you might think.

Term life insurance is generally the better bet for people who just want basic insurance protection because the premium is affordable.

“Term insurance is initially the least expensive form of life insurance you can buy,” says Brian Ashe, CLU and spokesperson for the LIFE Foundation. “A young family just starting out can get a lot of term insurance for a relatively low premium.”

But keep in mind, once your term expires you will likely need to look for a new policy. If you purchase a new term life insurance policy, the premium will go up based on your age and health status. For example, if you compare a the cost of a term policy for a 20-year-old male to the cost of a male above age 50, the male over 50 could be paying three to five times more for a term life policy than his younger counterpart.

If you decide that term is the best policy for you, you might want to think about purchasing a policy with a “guaranteed renewal” or “annual renewable” term. This means that the policy automatically renews on it’s own and you won’t be required to take another medical exam. This can be helpful especially if you become ill or find yourself with a pre-existing medical condition during the duration of the term. Still, like most term policies, the premium price goes up every consecutive year during the life of the policy.

Also, consider Return of Premium (ROP) term life insurance. “You pay premiums for 20 or 30 years and if you don’t die by the end of the term your premiums will be refunded,” explains Al Lurty, Senior Vice President and Head of Business Development for ING. “The premiums cost more but in the long run this type of policy can help you save money in addition to providing insurance protecting for you and your family. Premiums can range from one to three times as high.”

Ashe recommends that once young families are able to do so financially, they should convert all or a portion of their term life insurance policy to permanent life insurance.

If you were to ask a single person if they have purchased life insurance, don’t be surprised if they look at you blankly. It’s true that singles who are young and healthy rarely think about their own mortality yet alone life insurance, but here are some sobering facts:

The top leading causes of death for people between the ages 20 to 34 in the United States in December 2009, were accidents, suicide, homicide, cancer, diseases of the heart and HIV, according to the most recent mortality data issued by the National Vital Statistics System.

Tom Currey, President of the National Association of Insurance and Financial Advisors (NAIFA) understands this trend.

“The fact is, young people don’t feel they need life insurance,” says Currey. “It’s better to take a longer view because if you decide to get married in your thirties, you could have a health condition by then that may affect your life insurance rates. Also, you would not want the financial burden of your burial to fall on your family in the event of your death.”

Term is best
A 2006 survey by the National Association of Insurance Commissioners (NAIC) found that 35 percent of young singles have a life insurance policy. In addition, only 28 percent know the difference between term and whole life, while 27 percent are aware that buying life insurance now will guarantee coverage when they get older.

“Young singles should consider at the very least purchasing a term policy with guaranteed renewal,” suggests Al Lurty, Senior Vice President of Business Development at ING. “Term life insurance is still very affordable even though there has been a slight upward movement in rates recently. You can get rates that are .20 to .25 per $1,000 of coverage for a young, healthy single female on a 10-year plan.”

Brant Spesshardt, CFP and financial advisor for Dave Ramsey ELP, says that singles without children shouldn’t consider life insurance — unless there is a legitimate need.

“If their debt would fall on someone else who shares financial responsibility with them, then that would be a good reason to purchase life insurance. Also, if someone is relying on them financially [this doesn’t necessarily have to be a child] then they should have a term policy,” says Spesshardt. “If none of this applies to their situation, they should focus their efforts on becoming debt-free rather than paying into an insurance policy they really don’t need.”

Workers transitioning from entry-level positions to more sizable incomes are often concerned with improving their net worth, a process for which life insurance frequently enters the discussion.

Financial advice columnist Liz Pulliam Weston, warns that people should carefully weigh the decision to purchase such coverage before jumping in.

Growing retirement assets does not mean the time is right to invest in a life insurance policy, Weston writes.

Policies are intended to provide for children and non-working spouses who are financially dependent on a breadwinner, despite the cash-value provisions present in some types of coverage.

Whole life insurance includes such an investment portion, but the premiums for such a policy can be prohibitively high for some families, Weston says. A better option for bare-bones income protection is probably term life, which features lower premium rates and no investment option, but will still cover family members in the case of the policyholder’s death.

In the next five years, workers see voluntary benefits such as life and health insurance playing a major role in their lives.

According to a survey conducted by Harris Interactive, 82 percent of employees said having life insurance will be important in the next five years. Furthermore, 77 percent felt that way about disability policies, while 76 said as much about critical illness coverage.

“Employees clearly see the need for many types of insurance protection, especially as they get older,” says Randy Horn, CEO of the insurance company that commissioned the poll.

However, only 62 percent of workers surveyed said they had coverage through their employer’s or their spouse’s life insurance policy.

The survey also showed many workers are concerned about whether or not voluntary benefits will still be available five years in the future. Almost half (48 percent) expressed this worry when polled.

Life insurance can provide a number of financial benefits to workers, including ensuring their family will have a source of income should they die. Providers also offer annuities, which can act as an investment vehicle for participants.

This article was originally published by Life Quotes, Inc.

Longevity was in the news recently as a 114-year old Montana resident gained global attention for achieving the distinction of being the world’s oldest man.

In general, advances in medical technology and healthy lifestyle information have been helping Americans live longer than ever, although the large majority will still never make it to age 100.

For example, data on the U.S. Census Bureau website finds that as of 2008, there were nearly 4.3 million people in the U.S. over the age of 85, amounting to about 1.4 percent of the population. Women were nearly twice as likely as men to make it to this age, consistent with longstanding data which finds they have a longer life expectancy in general.

As people age, they may find that their life insurance needs will change. For example, parents of young children may be most interested in a term life policy that offers financial protection up to a certain year.

Another option for people to consider is a whole life policy, which provides investment income over time and which can provide an additional level of financial flexibility in an individual’s older years.

This article was originally published by Life Quotes, Inc.

Particularly in the current tough economic conditions, it’s important to ensure  loved one’s are cared for financially should tragedy strike. Erin Klingbeil writes at NASDAQ’s website that term life insurance could be a good option for younger families or those having a tough time making ends meet.

Klingbeil, who works for Snider Advisors, says that a 35-year-old male non-smoker will pay about $20 per month for 10 years for term life coverage. The benefit to his dependents, should the worst happen, would come out to $1,000,000. She says a permanent, cash-value policy could cost that same consumer about twenty times as much per month.

Although term life policies are not the answer for all situations – Klingbeil gives the example of parents of special-needs children, who will need lifelong financial support – term life insurance is frequently the most cost-effective solution to the problem of keeping one’s family secure in the event of death.

American consumers don’t seem to be getting the message. Following the advent of the current economic crisis, a recent study from LIMRA showed that consumers are putting off buying life insurance.

This article was originally published by Life Quotes, Inc.

The standard rules of thumb for purchasing life insurance policies – which tend to be based on income levels – may not be sufficient guidance in every case, according to a report in the Chicago Tribune.

Author and expert Tim Maurer told the Tribune that consumers should consider total life insurance needs by combining four main categories: Final expenses, mortgages and other debts, income replacement, and educational funds. These will vary wildly depending on the number and age of a family’s children, amount of money owed on a mortgage, and overall income level.

According to the Tribune, Maurer also warned that educational costs can be difficult to accurately calculate at the present time, given the highly changeable rate at which tuitions and fees have climbed during the past several years. Erring on the side of caution might be advisable.

Consumers must also decide whether to purchase term-life or whole-life policies, since while both can provide the same overall coverage amount, they provide it for different amounts of time – and at different costs.

This article was originally published by Life Quotes, Inc.

If you or a family member dies in a traffic accident or natural disaster, the same event that caused the death may leave your family with related repair costs to an automobile or home.

Edward Graves, author of “McGill’s Life Insurance” recommends using your life insurance policy as an immediate source of cash to help replace damaged property and address unplanned emergencies.

While some families might have the funds necessary to cover everything, the immediate cash from a life insurance policy can be a lifesaver for others. CNN Money suggests five tips for starting a family emergency fund, just in case.

The damage from windstorms, lightning, tornados, hurricanes, flooding, or earthquakes might not be covered by your homeowner’s policy.

A homeowner’s insurance policy requires you to temporarily repair any damage to your home after a disaster to prevent further damage. If you don’t have the immediate cash to make these repairs, the eventual property insurance claim settlement might be sharply reduced. This ultimately means you’ll receive less financial support from the insurance company. Having the extra amount of cash from life insurance proceeds can make all the difference.

When it comes to dealing with unplanned events, Marc Belletsky, spokesperson for The Hartford says cash is king.

“The security of having a source of liquid cash has value that can’t be overstated,” says Belletsky. “A life insurance policy helps address immediate needs, cover losses, pay hospital bills, and provides the necessary cash for your loved ones to keep on living.”

If you or another income-earning family member died today, what would your family’s financial situation be like? It’s not a pleasant subject to think about, but the knowledge that there are funds to help cover your family’s daily needs and costs provide a small comfort.

One way to ensure your family’s survivors have immediate cash after a death is through life insurance and proper planning, recommends Edward E. Graves author of “McGill’s Life Insurance.” A policy’s death benefits provide survivors with cash within a few days of a claim’s filing and frequently makes up a large portion of any family’s “emergency funds.”

Consider all the daily living needs that cash from life insurance proceeds could be used for. While every family’s living situation is different, food, utilities, transportation, other insurance bills, and mortgage or rent payments are common essentials. With children, school or college tuition expenses are also a factor.

The Bureau of Labor Statistics provides numbers and guidelines for people who want to create an emergency fund. The figures do account for inflation and increasing prices.

During the transition period after a death, some non-essential costs may help your family maintain their familiar standard of living. These include cable bills, newspaper or magazine subscriptions, entertainment costs, and air conditioning or heating bills.