People usually find losing a loved one and family member emotionally difficult. Financial worries sadly compound the huge emotional burden for some people. Life insurance plans aim to soften the blow, providing dependents with some financial protection that can help with:
- Debt Repayment
- Income Replacement (for the time being)
- Financial Coverage of Final Expenses
- Wealth Transfer and Estate Planning
- Business Security
- Charitable Giving
The list continues, and it certainly offers dependents some peace of mind even during these difficult times. You might find it interesting that some people borrow against such policies. You can click here for more on this.
Some people find themselves sidelined from this insurance plan. Fortunately, people with HIV no longer face this issue, though they did for a while. Read on to discover how insurers evaluate HIV life insurance applicants.
How Insurers Evaluate HIV Life Insurance Applicants Today
Several insurers now offer life insurance plans to people with HIV, which many already know. However, certain specifics still determine eligibility for these policies and they include:
Lifestyle Factors
HIV-positive individuals can live normal, healthy lives. However, they must exercise extra caution because certain lifestyle habits increase their risk of complications. Because insurers know this, they assess such applicants’ lifestyles by focusing on things like:
Alcohol and Drug Use
Insurers may consider applicants who have a history of alcohol or drug use ineligible for this plan, especially if it is an ongoing issue. The reason is that alcohol and drug use can interfere with treatment and also weaken the already delicate immune system. For more insight on this, you can see: https://www.hiv.gov/.
Occupation and Hobbies
Occupation and hobbies generally affect eligibility for these policies. So, this does not apply only to people with HIV. It usually determines the cost in terms of premiums, rather than eligibility, in most cases.
Smoking Status
Smoking increases the risk of health complications and even death for people with HIV. Many insurers, therefore, consider smoking applicants ineligible for their plans. Those willing to offer plans to such applicants would most likely significantly raise the cost to compensate for the high risk they take.
Policy Type
The term “life insurance” broadly encompasses several policy types that carry this tag with varying terms and conditions. This includes traditional and unconventional policy types.
The policy type offered by the insurer also determines eligibility and cost. You should strongly compare quotes from various options, as several insurers offer these policies.
The services of specialized insurance brokers can be very helpful for this reason. You can see Insurance Hero for a detailed comparison of quotes from many insurers offering such plans. The goal is to ensure your choice is well-informed and the best there is.
Medical Factors
This is undoubtedly one of the most important factors that determine eligibility for plans, or otherwise. Some of the things that will be assessed include:
CD4 Count
HIV primarily attacks the body’s immune system, which protects it from illness. Adherence to treatment and lifestyle decisions largely explain why some people with HIV maintain stronger immune systems.
The CD4 count is how the immune system’s strength is assessed. Insurers strongly consider individuals with a high CD4 count insurable.
Viral Load Status
Some infected people have more of this harmful virus than others. Those with more of it stand an increased risk of experiencing its adverse effects.
Viral load is how we refer to the amount of HIV present in the blood. Broadly speaking, the viral load can be detectable (disadvantageous) or undetectable (better).
Research, for instance, demonstrates that an undetectable viral load stops the virus from sexually transmitting. It also means better life expectancy, which insurers prioritize because it significantly lowers insurance risk.
General Health State
Besides HIV, some people also have other medical conditions like diabetes, hepatitis, or cardiovascular disease. This definitely increases the risk for insurers, which is why some would deny such applicants. Most other insurers would offer their plan at a high cost.
Treatment History
People with this virus can live a normal and healthy life. Some credible studies even reveal how HIV-positive people can have about the same life expectancy as HIV-negative individuals. You can read this article for more on this.
Of course, this is provided they adhere to the required treatment regimen. Therefore, insurers focus on treatment history when considering applicants’ eligibility.
Types of Life Insurance Policies for HIV-Positive Individuals
Traditional life insurance policies for HIV-positive people are broadly categorized into two and they are:
Whole Life Insurance
This plan lasts for the insured client’s lifetime. Of course, this is from the moment when the client subscribes to the plan and as long as obligations like premium payment are duly fulfilled.
You should not find it surprising that this plan’s cost and eligibility are more expensive and stringent, respectively. This can be attributed to the extended period and the associated peaks.
Term Life Insurance
It provides coverage for a fixed period. For instance, it could last 10 or even 30 years, depending on what is stipulated in the policy’s agreement. This feature makes it more affordable and very accessible (at least compared to the whole-life option).
In some situations, neither of the two traditional policy options covers some HIV-positive individuals. Well, they can still use some unconventional policies as alternatives. Such policies provide some, but not all, of the benefits of traditional life insurance policies.
Conclusion
Thankfully, insurers no longer outrightly disqualify people with HIV from life insurance. Advancements in medicine and a couple of other things are responsible for this.
You need to know and consider certain things to ensure that the life insurance application process goes well. This also helps you avoid future complications. First, you should ensure transparency because it reduces the risk of long-term claim disputes and even policy denial during the application phase.
Secondly, you must submit to all medical examinations as requested by the insurer and that also includes honestly filling out any health questionnaire. Thirdly, a smart move would be to work with insurance agencies/brokers who understand this part of the insurance industry. So, take note of all these.
