Life insurers are averse to risk, and there's no
riskier medical condition than HIV. Despite advances in the treatment
of HIV, there are no life insurers that currently underwrite whole or term life policies for applicants with HIV. Guaranteed Trust Life Insurance Co. dabbled in the business of offering "impaired risk" life insurance for those with HIV but ceased offering such policies in June 2004.
Nonetheless, there are other insurance strategies available for those with HIV:
Find out if you are eligible for a group life insurance policy
through work or a trade or alumni association. These policies
underwrite the group as a whole, not the individuals. Even with a group
life policy, however, benefits may be capped at a low level unless you
can provide "evidence of insurability," which an HIV applicant won't be
able to do.
Consider a "guaranteed issue" final expense policy. These
whole life policies usually provide a benefit of $25,000 to $30,000
(depending on the company) without regard to health conditions. To find
out who sells guaranteed issue life insurance policies in your state,
contact your state department of insurance.
Guaranteed issue life insurance policies carry a "graded benefit." This
means that if you die within the first two or three years (terms vary
by policy), your beneficiaries receive only a portion of the benefit,
or none, or a return of premiums paid plus interest; if you die after
the initial period has passed, beneficiaries receive the full benefit.
Be aware that these policies are costly and usually won't be sold to
someone over age 70. If you die in an accident during the initial
specified period, the policy will usually pay.
Consider an accidental death and dismemberment (AD&D)
policy. These policies can also be purchased without regard to health
conditions and will provide your beneficiaries with the benefit should
you die in an accident. If you die from a health condition, or even old
age, the policy does not pay out.
