Now that there is traditional life insurance available for those who are HIV positive and meet reasonable requirements, it’s time to talk more in depth about who this turn of events will most impact. When we were first told about this breakout underwriting change we were told that there were going to be two companies and that one would be offering only permanent life insurance and the other would be offering both term and permanent. Almost as soon as we rolled it out and started talking about it the company that said they would offer term backed out on the term. They still claim they will offer no lapse guarantee UL’s up to $5 million but we are waiting to see them actually come through since we tend to be careful with companies that do something like they did pulling the term offer.
Having said that, we do have one company solidly on board for approving HIV+ life insurance using their no lapse guarantee universal life. Of course there are parameters and guidelines that have to be met, but with the anti retroviral drugs in use today, with well controlled HIV+, approvals are at hand. The only issue as we see it is, with the elimination of term life insurance, it is going to price some people out of the product, but for those that make a good living or would be happy with just some reasonably priced life insurance, we’ve got the answer. We just sent life insurance quotes out to a 54 year old HIV+ man and for $100,000 the premium will be $2343 annually, for $250,000 it will be $5700 annually and for $500,000 it will be $11,279 a year. So we can go up to a $1 million with this product that has a guaranteed level premium and level death benefit to age 121. Obviously at higher amounts you would probably have to be making a substantial living or be a high net worth client to be able to afford it at that age, but knock 20 years off and the same three amounts at age 34 would have premiums of $1155 a year, $2587 a year and $5051 a year.
It’s not cheap life insurance, but it’s available which has never been the case before. Our recommendation would be to mind your budget and get as much as you can comfortably afford. It’s going to take some time, but we believe prices will eventually come down some and term insurance may be available at some point. In kicking this around with colleagues we think this start may be about all we see for maybe the next 5 years. Then life insurance companies will have even more medical information plus their own mortality data and go one of two ways. They will either pull it off the market or become more friendly with it.
Clearly over age 50 these life insurance products get a little pricey, but not so much that the professionals and CEO’s we have mostly been quoting to can’t afford it, and for those under 40 just stable income can put you into the market for a good size family protection package. If you have any questions or would like to get quotes at your age for up to $1 million, call or email us. We can help.
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