Simple and straightforwardguides to Life Insurance

Life Insurance Options when you have HIV

HIV is a disease that has seen the number of cases increase year on year since it was first discovered. It is an autoimmune disease where the body becomes unable to protect itself from infection and will eventually lead to death. There are roughly 0.15% of people in the UK who have HIV.

Getting Life Insurance is Easier

In the past getting life insurance if you had been diagnosed with HIV was virtually impossible. However, many people with HIV do have families that they would like to make sure are well looked after financially when they die. Since medical care has improved and there are drugs that can prolong the life of someone with HIV, getting insurance may not be so difficult. It has taken insurance companies a long time to get the confidence to allow people with HIV to take out insurance. However, there are now some policies available. The policies may have restrictions with regards to how long you have had HIV, what stage it is at and what treatment you are having. It can still be a very long and difficult process and there are still some companies that refuse to insure someone with HIV under any circumstances. For those companies that will grant insurance, there are several options.

Life Insurance

Life insurance will pay out if you die within a certain term and if you survive, no money is paid out. It is always the case that the shorter the term the cheaper the insurance and this would very much be the case with someone with HIV. As those with HIV will tend to die younger than people without the disease, the younger they are when the policy ends, the cheaper it will be. The amount of time they have had the disease will also be an important factor in the decision as to whether the insurance is given and how much it will cost.

Life Assurance

A life assurance policy will pay out on death and is a lifelong policy (although this type of policy may be able to be cashed in early). It is much less likely that someone with HIV would be able to get this type of insurance due to the price tends to be extremely high. If they wanted something to pay out on death, it could be wiser to put some money away each month in an investment, which can be cashed in when they die.

Accident Policy

There are some insurance companies that will cover a person with HIV in the event they have an accident. This type of policy can be purchased regardless of health but will only pay out if you die from an accident not related to your health condition. The benefits of this type of policy are that it is inexpensive and very easy to understand however, is not viewed as much value because of the policy limits. Accidental insurance is unlikely to be of very much use and provide very little peace of mind, although it may be the only sort of insurance available.

Already Insured

It is important to know that if you already hold an insurance policy before you are diagnosed then you do not need to inform the insurer and even if you do, they are not permitted to change the policy at all or the premiums being paid. If the policyholder dies due to an HIV or AIDS related illness it would still pay out unless there was something in the terms to say otherwise. This means that if someone is diagnosed with HIV and has insurance, they should think very hard before cashing it in or stopping payments it as it could be very difficult for them to find something else and they would almost certainly have to pay a larger premium.

Today there is more life insurance option available for people with HIV. It can still be very expensive though and certain types will be more expensive than others. Doing some research will help in finding the best cover at the best price.