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If you’re in the market for life insurance and have tested positive for HIV or diagnosed with AIDS, this article is for you. Both HIV and AIDS are considered high-risk conditions that can make qualifying for traditional life insurance difficult. Unfortunately, some people think that they cannot get ANY type of life insurance with these afflictions. Fortunately, this is untrue. There is life insurance for people with HIV or AIDS.
Let’s get to it.
If you’ve tested HIV positive and/or been diagnosed with AIDS, you cannot qualify for traditional term or whole life insurance. When we say traditional, we mean any life insurance policy that includes medical underwriting. These types of plans will require medical questions in the application and may even perform a medical exam. If you have HIV/AIDS, you will have an immediate decline and should not even bother applying.
Fortunately, there are still options for high-risk medical conditions, including HIV or AIDS.
The best option is called a Guaranteed Acceptance Life Insurance Policy, which we cover in-depth in the paragraphs below.
About HIV & Life Insurance Carriers
HIV (human immunodeficiency virus) is a virus that attacks the immune system, which is the body’s natural defense system. In the United States, there were an estimated 37,600 new HIV infections in 2014. This is a decline of about 10% from 2010.
In 1996, the total life expectancy for an infected 20-year-old person was 39 years. In 2011, the total life expectancy bumped up to about 70 years. Someone who is HIV positive, receiving treatment, and in optimal health — meaning they don’t do drugs and are free of other infections — may live to be in their late 70s.
The truth is, regardless of how well-controlled a person’s HIV is, they are instantly deemed uninsurable by all carriers for traditional life insurance. This may change in the future as the life expectancy continues to improve and the prevalence decreases, but for now, it is the case.
If you were to not know this information and apply, you would be instantly declined when an insurance agent asks if you are HIV positive or have AIDS. This is a standard “knock out” question that every single insurance agent will ask early on in the application process.
Pro Tip: You should always be completely honest when answering health questions with an insurance agent. It is not only illegal to lie about your health status, but it is also pointless. An insurance carrier will find out through their own discovery process of all your health issues prior to issuing a policy.
Guaranteed Issue Life Insurance for HIV & AIDS Patients
As we discussed, the absolute best (and only) option for people living with HIV/AIDS is a high-risk guaranteed acceptance life insurance policy. This policy will provide your loved ones with protection once you pass that assists with any final expenses. These expenses may include outstanding medical bills, debt, household expenses, etc.
A guaranteed acceptance policy is still considered a whole life policy, which means it will stay in place until you pass. The main features of a guaranteed issue life insurance policy for people with HIV/AIDS include:
- No medical questions or exam
- Guaranteed acceptance
- Fixed monthly premiums
- Guaranteed death benefits
- Accrual of cash value
- No expiration date (you cannot outlive it)
This type of policy is a no-brainer for anyone with a high-risk condition like terminal cancer or HIV. The reason being that without it, your beneficiaries will be left with the full financial burden of covering any and all final expenses. Unless you have a savings account dedicated for this purpose, liquid assets or another type of insurance policy, the financial burden could be severe.
We always recommend that people have at least some form of insurance protection as it is the most selfless purchase a person can make. Guaranteed acceptance insurance is a saving grace for HIV and AIDS clients, hands down.
Graded Period for HIV Positive or AIDS Patients
The number one drawback to a guaranteed acceptance policy is the mandatory waiting period. Typically this period is a minimum of two years and is the amount of time you must outlive in order for the policy to be paid-in-full.
The reason for this is because the insurance companies must protect themselves from people who are very near death from abusing the system and getting last-minute money for their families. If this wasn’t the case, carriers would be taken advantage of and ruined very quickly.
If death occurs during the waiting period, however, all life insurance carriers will refund your premiums plus interest. This interest is typically around 10%. After the two years have passed, you are protected in full.
The only exception to this is if death occurs by accidental means, such as a car accident. When this happens, the entire policy amount will be paid as long as the accidental cause of death can be proven.
Applying for Life Insurance for People with HIV/AIDS
If you have been diagnosed with either HIV or AIDS, it’s imperative that you get coverage as quickly as possible. Fortunately, it is very easy to apply and takes approximately 10 minutes. All you need to apply is your and your beneficiary(s) personal information and preferred payment method. That’s it.
Once your application has been accepted, you will begin working through the two-year graded period.
Now you may be wondering what the best carrier is for guaranteed acceptance life insurance? Well, ultimately the choice is yours and the best option depends on your unique situation. Factors like state availability, graded period duration, affordability and living benefits all play a role in the decision-making process.
An experienced agent can help work through these factors with you. But in the interest of time, there are three guaranteed acceptance carriers that we highly recommend. These include:
In our experience, we have found these three to provide the best combination of cost, benefits, and availability. If you’d like more information on them, click on their links above to be directed to detailed posts.
For most people, the cost of insurance will be the primary driver. If this is you, we recommend using the free insurance quote tool on this page to instantly run a quote for your birth date.
Selecting the Best Life Insurance Carrier with HIV or AIDS
What is the best-guaranteed acceptance insurance carrier for me or my loved one? This question is where a company like us comes in. As an independent agency, it is our job to look at your unique situation and determine which company(s) will offer you the best deal and fit your individual situation. We understand how a high-risk condition like HIV and AIDS is viewed in the eyes of insurers and can make the most appropriate recommendation.
When you work with an independent agency, you will receive information across multiple carriers. This allows you to make an informed decision while also saving time. The other option is to work with a captive agent and get pigeonholed into purchasing the only policy option they have. Wouldn’t you rather know that you looked at 12+ carriers and had the best decision made for you?
Working with Guaranteed Issue Life
When you partner with us, we will gather some basic information, answer your questions and provide you with an expert recommendation. We can then facilitate the application process for you, free of charge. As we mentioned, this process is quick and painless and shouldn’t take more than a few minutes.
Imagine, spending 10-20 minutes on the phone and ensuring the financial security of your family. We can’t imagine a better use of your time.
If you are ready to move forward with securing the most affordable life insurance for people with HIV or AIDS, give us a call today. You can also run an instant quote for your age using the free quote tool on this page. We look forward to working with you soon!