by Guest » Thu Jun 04, 2009 07:13 pm
What is the availability of life insurance for hiv patients? Are there any other Life Insurance companies that will insure people with HIV? Please advise.
Thank You
Thank You
Posted: Fri Jun 05, 2009 09:36 am Post Subject:
Life insurance companies might offer life insurance for hiv patients but it would depend upon several factors. Normally they would be required to pay higher amount than standard life rates. However,
Are there any other Life Insurance companies that will insure people with HIV? Please advise.
What do you mean by any other insurance company? Have you been contacted by any insurer/agent for life policy?
Posted: Fri Jun 05, 2009 11:48 am Post Subject: No underwritten policies for hiv patients
No life insurance company will issue underwritten life insurance for hiv patients now. There may be companies that have guaranteed-issue policies for small amounts like $10,000, but they are graded (no death benefit if you die in the first two years) and are extremely expensive.
Posted: Fri Jun 05, 2009 12:26 pm Post Subject:
No life insurance company will issue an underwritten policy on someone who has HIV. There may be companies that have guaranteed-issue policies for small amounts like $10,000, but they are graded (no death benefit if you die in the first two years) and are extremely expensive.
He can actually probably get $50,000. The death benefit is a return of premium compounded at 5% with such life insurance for hiv patients (for the first 2 years).
"Expensive" is in the eye of the beholder. The policy is very expensive for someone who is healthy. For someone who expects to die within a few years, it's incredibly cheap.
Posted: Fri Jun 05, 2009 12:35 pm Post Subject:
He can actually probably get $50,000. The death benefit is a return of premium compounded at 5% with such life insurance for hiv patients (for the first 2 years).
"Expensive" is in the eye of the beholder. The policy is very expensive for someone who is healthy. For someone who expects to die within a few years, it's incredibly cheap.
Usually if you don't die between the beginning of year 3 and the end of year 6 on a graded policy, you'll lose that gamble. Die in year 1 or 2 and you only get your premium back plus some interest. Die in year 7 and you've already paid up your entire death benefit.
True story - we had a client who had a $25k graded death benefit policy who died last year......she died on the last day of the second year of the policy, so only the premium + interest was returned. If she had lived another 12 hours or so, the family would have gotten an extra ~$18,000.
Posted: Fri Jun 05, 2009 01:09 pm Post Subject:
I looked at these life insurance for hiv patients twice in the last year. Once was for a person who needed a heart transplant. Once for someone with a disease that I can't remember.
In both of these cases, it was going to take them living a dozen years or more to lose the gamble.
It sounds like you are looking at a very expensive graded death benefit policy. The policy that you are describing would be 3-4K for $25,000. Unless my memory is wrong, I recall 4K being the price for $50,000.
Posted: Fri Jun 05, 2009 01:14 pm Post Subject:
The premiums you're referring to may be based on age....I believe she was paying around $300/month for $25k of coverage (she had cancer). We didn't write the policy though, so I don't know all the specifics.
Posted: Fri Jun 05, 2009 01:25 pm Post Subject:
So, the bottom line for the original poster is that "yes" life insurance for hiv patients can be purchased, but it may or may not be at a price that makes it worthwhile.
For a young, relatively healthy person with HIV, it probably is too expensive. If the person isn't healthy, or has full blown AIDs, it probably does make sense.
Posted: Fri Jun 05, 2009 05:24 pm Post Subject: high premium, low benefits
Are there any other Life Insurance companies that will insure people with HIV?
Yes.
Guaranteed Acceptance Life Insurance
MODIFIED BENEFIT WHOLE LIFE
VERY HIGH premium, very LOW benefit.
With life insurance for hiv patients the insurance company can legally rob you by having you screw yourself. You need to die on the first day of the beginning of the third policy year OR die by accident the day after the policy is issued.
NO AGENT WILL CALL YOU.
You get to buy this all by yourself!
Simply "Google" Guaranteed Acceptance Life Insurance
Posted: Fri Jun 05, 2009 07:56 pm Post Subject:
Gary, tell us how you really feel.
I've looked into this a few times and it is a great deal for somebody who is dying. Like most products, life insurance for hiv patients isn't good or bad. It's appropriate or inappropriate based upon the situation.
Here's an example. Joe can get $50,000 of coverage for $5,000 a year. He has cancer and a realistic guess on his life expectancy is 18-36 months.
If he dies within 24 months, his family will get an after tax guaranteed return of 5%. That isn't bad.
If he lives 6 years, it works out to be a 15% compound return. If he dies between 2 and 6 years, it will be much higher.
These policies are a great deal for people who are actually dying, but not good for people who aren't dying, but are simply unhealthy.
Another way to put that is that it may not be a good policy for somebody with HIV, but the second that it turns into AIDs, it's time to buy.
Posted: Fri Jun 05, 2009 08:58 pm Post Subject:
Dear Insurance Expert,
Only an insurance agent would know what it was that you just wrote.
Please correct me if I have my wires crossed:
This means:
Here's an example. Joe can get $50,000 of coverage for $5,000 a year. He has cancer and a realistic guess on his life expectancy is 18-36 months.
If he dies within 24 months, his family will get an after tax guaranteed return of 5%. That isn't bad.
If he dies in 24 months the death benefit is $10,500, correct? To say he has $50,000 of coverage is not accurate.
How is this "life insurance"?
The death benefit is simply the return of premiums paid with interest. If he put the money in a fixed annuity paying a 10% premium bonus and 2% interest, at the end of two years the death benefit would be $11,444.40.
EVEN after taxes in a 28% tax bracket the beneficiary still clears $11,040.
Now I'm sorry....but when the death benefit of a fixed annuity EXCEEDS what a life insurance policy would provide even after taxes SOMETHING is wrong with the so called life insurance policy.
These policies aren't a good deal for anyone buying the policy. Unless you die by accident the day after the policy is issued OR die on the first day of the 3rd policy year. The longer you live, the worse these polices are and with many of them you can actually pay more in premium than the death benefit will be! :shock:
These polices are sold to desparate people who find themselves in a desparate situation.
Do the math...the insurance company has...they NEVER lose on these policies EVER.
Pagination
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