Hiv And Life Insurance: What Are Your Options?

People living with HIV can get life insurance, but their options may be limited and they may face higher costs. Several insurers are willing to offer coverage to HIV-positive applicants, recognising that many people with HIV have a near-normal life expectancy. However, insurers consider HIV a high insurance risk, and applicants can expect to pay some of the highest rates on the market.

HIV-positive individuals may be eligible for term and whole life insurance, but it will likely be expensive

Life Insurance for HIV-Positive Individuals

People living with HIV may be eligible for term and whole life insurance, but they can expect to pay high premiums for their coverage.

Eligibility and Requirements

HIV-positive individuals can be eligible for term and whole life insurance, but they will likely need to meet specific requirements. Most insurers will require the applicant to have at least a year since their HIV diagnosis and show at least six months of stable health and treatment. Maintaining an undetectable viral load for over a year and following antiretroviral therapy (ART) will increase the chances of approval.

In addition, insurers will want detailed information about the applicant's health, including CD4 cell count, viral load, any additional chronic conditions, and medications. Leading a healthy lifestyle, avoiding smoking, and engaging in low-risk activities can also improve the chances of approval and obtaining more affordable rates.

Underwriting Process

The underwriting process for HIV-positive individuals is more rigorous and involves a comprehensive evaluation of the applicant's health. Insurers will request medical records, including the date of diagnosis, treatment regimen, and lab results. They may also require additional testing to assess the applicant's overall health and the progression of their HIV condition.

Cost of Coverage

Life insurance for HIV-positive individuals tends to be expensive due to the perceived health risks associated with HIV. Insurers often categorize these applicants as high-risk, resulting in higher premiums. The cost of coverage will depend on the individual's health status, treatment plan, and the insurer's underwriting guidelines.

Alternative Options

If HIV-positive individuals face challenges obtaining traditional life insurance, they can consider alternative options such as guaranteed issue life insurance, simplified issue life insurance, or group life insurance. These policies may have lower coverage amounts and higher premiums, but they can provide some financial protection.

Additionally, employer-sponsored benefits, such as group life insurance, disability insurance, and health savings accounts (HSAs), can be accessible without individual medical underwriting. Critical illness insurance and disability insurance can also provide financial support in the event of a health crisis or inability to work.

Final expense and group life insurance are also options for HIV-positive individuals

Final expense insurance is a type of life insurance designed to cover end-of-life expenses such as funeral costs, medical bills, and other associated costs. Unlike traditional life insurance, final expense policies are generally more accessible, especially for seniors with health conditions like HIV/AIDS. While premiums can vary, there are affordable options available for people with HIV/AIDS. Many policies offer no-exam options, making it easier for seniors with health conditions to get insured.

Final expense insurance policies are a good option for people who may not qualify for traditional life insurance due to health reasons. Coverage is generally restricted to people age 45 or older. Acceptance is nearly guaranteed, so it may be the best option if you're over 45 and can't find a policy elsewhere.

When it comes to final expense insurance, it's important to select the appropriate policy, as this choice can offer significant peace of mind. It's crucial to compare different policies, looking at terms, benefits, and costs, to find the one that best suits your needs.

Group life insurance is another option for people with HIV. Group life insurance is a type of insurance where a single contract covers an entire group of people. You can typically get group life insurance regardless of health status, and your employer may even cover some or all of your premiums. Most group life insurance plans have a coverage amount limit—usually around $50,000 or two times your salary. While guaranteed issue and group life insurance may not offer as much coverage as you need, having some coverage is better than none.

Underwriting guidelines determine the rate class an applicant qualifies for

Underwriting guidelines 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 offer are:

• Substandard (Table Rated)
• Preferred
• Standard

Applicants who have tested positive for HIV will typically be rated as substandard. No matter how well an HIV-positive applicant is managing their condition, a person who is healthy and HIV-negative will be offered lower rates than an HIV-positive applicant.

The rate class an applicant qualifies for will then be used, along with their age and gender, to determine the rate they pay for insurance. The better the rating, the lower the insurance premium will be. The "standard" rating is the baseline, so rates drop with each class above standard and increase with each table rating below standard.

For example, a standard rating for a 35-year-old woman in the preferred plus class could mean an annual premium of $1,192 for a $1 million, 30-year term life policy. The same policy for a woman in the preferred class would be $732 per year, while the premium for a woman in the super-preferred class would be $613 per year.

It's important to note that underwriting guidelines vary by insurance company, and companies that offer traditional life insurance to HIV-positive applicants will not consider applicants diagnosed within the last year. Additionally, HIV-positive applicants should expect the underwriter to inquire into at least five areas concerning the HIV diagnosis:

• The stage of the disease
• The age of the applicant
• The overall health of the applicant, including any other health conditions
• Whether the applicant is following a treatment plan prescribed by a physician
• The applicant's lifestyle, including their ability to work and perform daily living activities

HIV-positive individuals will likely be rated as Substandard, resulting in higher rates than healthy individuals

The underwriting process, which evaluates an applicant's risk level, may involve additional scrutiny for those with HIV. Underwriters will pay close attention to the applicant's HIV status, requesting detailed medical records related to the diagnosis, including the date of diagnosis, current CD4 count, viral load, and treatment regimen. The process may also include additional tests to assess the applicant's overall health status and the progression and management of their HIV condition.

The higher rates for HIV-positive individuals are due to the increased perception of health risks associated with the condition. Underwriters will consider the applicant's overall health, the progression of their HIV, and any related health complications. The availability and cost of life insurance for HIV-positive individuals will depend on various factors, including their age, overall health, treatment plan, and the insurance company's underwriting guidelines.

While some insurers may deny coverage or charge significantly higher premiums, there are companies that specialise in high-risk coverage or have inclusive underwriting guidelines, offering more flexible options for HIV-positive applicants. These companies take into account the advancements in treatment and the fact that many HIV-positive individuals can now live a near-normal life expectancy.

The application process for life insurance with HIV involves detailed health screenings and can be lengthy

Research and Consult Experts

First, research potential insurers that offer life insurance for people with HIV. Look for companies that specialise in high-risk coverage or have inclusive underwriting guidelines. You can also seek advice from an insurance agent or broker experienced in high-risk policies. They can guide you through the application process and suggest ways to improve your chances of obtaining coverage.

Application and Health Screening

When you apply, be prepared for detailed questions about your health. You will likely be asked about your medical history, current health status, family medical history, and lifestyle habits such as smoking or alcohol consumption. For HIV-positive individuals, there will be additional inquiries related to their HIV status, such as the date of diagnosis, current CD4 count and viral load, treatment regimen, and medication adherence.

You will also need to give permission for the insurance company to obtain further information from your doctors. They will request written statements from your GP and may also contact your HIV clinic to gain a comprehensive understanding of your health.

Medical Examination

If the policy requires it, you will need to undergo a medical examination. This typically includes a physical check-up and specific tests, such as blood and urine analysis. The insurer may also test for HIV as part of the examination.

Underwriting Process

After submitting your application, it enters the underwriting phase. This is a period of evaluation where the insurer assesses your risk level based on your application and medical exam results. The underwriting process may be more detailed and lengthy for HIV-positive applicants as underwriters will pay particular attention to their HIV status and request detailed medical records related to the diagnosis and treatment. This process can take a few weeks to complete.

Review and Sign Policy

Once your application is approved, you will receive the policy terms for review. Ensure you carefully understand the coverage, premiums, and any potential exclusions or limitations before signing.

Frequently asked questions