by Guest » Wed May 09, 2012 11:24 pm
Please help I have a sibling who is HIV positive and life insurance is necessary. Please help us get insured. Please share any info that you may have that can help my family in this situation. Chicago, IL.
Posted: Thu May 10, 2012 08:31 am Post Subject: Life insurance for HIV positive
Life insurers usually don’t allow policy to individuals whom they consider as risk, and HIV positive persons are regarded as high risk. You can buy a "guaranteed issue" final expense policy though. It usually comes along with graded benefits, and is not sold to those above 70 years of age. However, you’ll need to pay more for it.
Posted: Wed May 16, 2012 12:54 am Post Subject:
I work with several carriers that might cover your sibling. PM me, and I can get you a quote. Just know that it won't be a huge death benefit. 50K would be the max that any company would offer with HIV.
Posted: Fri May 18, 2012 10:11 am Post Subject:
This may be hard, and even impossible. I'm sorry for the news. Have you tried contacting community organizations that have life insurance policies for high risk individuals or know of organizations that can help with this? A final expense policy may be your only option in this case, especially because life insurance is essentially a bet placed on a life that will not die any time soon. Even with advances in HIV medications that can prolong the life of a patient before AIDS sets in, this is a huge risk for a life insurance company.
Pat Cassidy
Disclaimer: I work for [link removed per TOU] and this is my personal opinion.
Posted: Fri May 18, 2012 10:28 am Post Subject:
Most of the times insurance companies do not sell their insurance to such people whom they consider as a "definite" case. I mean like if they know that a person has cancer which cannot be treated anymore and if he comes for the insurance, then company refuses to do so. I think there is hardly any company who would be willing to insure such a person just like your case.
Posted: Tue May 22, 2012 02:51 pm Post Subject:
life insurance is essentially a bet placed on a life that will not die any time soon.
This is why persons like PatCassidy really need to be licensed and educated. His statement is entirely wrong.
Life insurance is a "bet" by the policyowner that death WILL occur sooner rather than later. The insurance company takes the "bet" because, statistically, death should occur later. As a person ages, he/she is getting closer to death one day at a time, and the cost to cover that risk increases because death is now expected sooner.
In the case of a person diagnosed with a terminal illness or one expected to cause a premature death, the insurance companies typically do not want to cover that risk because they will not have sufficient time to recover their expenses of "policy acquisition" and provide additional revenue to earn a positive return over time.
But there are a small number of companies that will take the bet, at a very high cost per $1,000 of death benefit, because, guess what? Some of those folks will live longer than they expected, and have to pay more premiums than they thought they would, and others will pay the premiums for a few months and then be forced to stop paying due to other financial considerations, and in losing the insurance they take the insurance company off the hook just before they die. Both are Win-Win situations for the insurance companies.
In the "standard market" for life insurance, a diagnosis of HIV+ will result in a decline for coverage. But, regardless of age or health, there will always be an insurance company, somewhere in the world, willing to take any risk for the "right" amount of money -- and they are the sole determiner of how much is the "right" amount.
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