A lot has changed in the last 25 years in regards to AIDS and HIV. If you were diagnosed in 1996, it was essentially a terminal diagnosis as those who test positive were only expected to live about ten years.
Thankfully modern medicine has come a long way since 1996. The current life expectancy for someone with HIV that was detected early and continues with proper care now matches the standard life expectancy for those without this diagnosis. While this is terrific news, this diagnosis will still drastically influence your eligibility for final expense life insurance.
Can I Get Final Expense Insurance with AIDS or HIV?
Unfortunately, being HIV or AIDS positive will affect your ability to qualify for a burial insurance plan with immediate coverage. The only type of policy available to people with an AIDS, HIV, or ARC diagnosis is one that offers guaranteed acceptance.
How Does Guaranteed Acceptance Life Insurance Work?
This type of policy, as the name suggests, guarantees acceptance to 100% of applicants. These plans are also known as guaranteed issue and have two standard identifying features.
No Medical Questions: While all final expense policies advertise no medical exams, only Guaranteed Issue offers coverage with no medical questions. This, of course, means that even people who are in “unfavorable health” are still very much eligible for these policies.
There is no health questionnaire, no MIB (Medical Information Bureau) check, and no prescription history check, resulting in 100% acceptance.
Two-Year Waiting Period: These policies will always come with at least a 2-year waiting period. If the insured passes away during the waiting period, the beneficiary receives the paid premiums plus a predetermined amount of interest, typically 10%.
While you will not have full coverage right away, a guaranteed 10% return is better than many investment strategies. Plus, thanks to modern medicine, positive individuals have essentially the same lifespan as everyone else, so most will make it through this waiting period with ease.
Whole Life Final Expense Insurance Benefits
In addition, all whole life funeral insurance comes with several other associated attributes.
Coverage Lock: The coverage you sign up for on day one will remain the same for your entire life, assuming you pay the scheduled premiums. With other types of coverage, this is not the case. Some plans will change the coverage amount as the policyholder ages.
Price Lock: Like the coverage lock, the price will remain the same for your entire life. The price you pay for your first premium will be the price you pay for the rest of your life. This is why it is often best to take out a policy sooner rather than later, as the cost will increase the older you are upon initial policy application.
No Expiration: Final Expense is a type of Whole Life Insurance that lasts for the entire life of the insured, thus no expiration. Other plans may expire on a specific date or once you reach a certain age which is not ideal when planning for your end-of-life expenses since no one knows when exactly this will be.
Builds Cash Value: Typical of most Whole Life policies, a cash value is created over time, allowing you to draw on the balance in the form of a loan. Basically, a portion of each premium goes into the cash value account that you can then borrow against if needed.
Lump-Sum Payout: Once the day comes for your beneficiary to file a claim for the policy, they will receive a tax-free lump-sum check. This money can be spent in any way they deem necessary. It is always recommended to have a beneficiary you can explicitly trust to follow through with your wishes.
Burial Insurance With AIDS: Underwriting Criteria
Underwriting is the process that the carrier goes through to determine if they will provide coverage to an individual. Every funeral insurance provider that offers immediate coverage asks about this immunodeficiency condition in essentially the same way.
“Have you ever been diagnosed with, received, or been advised to receive treatment or medication for Acquired Immune Deficiency Syndrome (AIDS), AIDS Related Complex (ARC), or tested positive for HIV?”
While your diagnosis might be entirely under control and closely monitored by your doctor and you, the carriers do not care.
If you have ever been treated for or diagnosed with any of the three conditions listed in the question, you will be unable to qualify for any plan other than a guaranteed issue.
Why Being AIDS Positive Matters for Funeral Insurance
Having this diagnosis is of great importance to the insurance providers because of the health risks that come along with this immunodeficiency virus.
Having a virus that attacks the immune system causes it not to work as effectively as it should. This greatly opens up the possibility of contracting opportunistic infections and cancers due to the vulnerability of the immune system.
Some of the more common opportunistic infections and cancers include:
- Cryptococcal meningitis
- Herpes simplex viruses
- Pneumocystis pneumonia
- Salmonella septicemia (food poisoning)
- Tuberculosis (TB)
- Mycobacterium avium complex (MAC)
- Invasive cervical cancer
- Kaposi sarcoma
- Non-Hodgkin’s lymphoma
This is a long list of hard-hitting potential diagnoses and is what the providers want to avoid when deciding to accept someone.
Best Companies & Quotes for Funeral Insurance With AIDS
Several companies offer policies with guaranteed coverage; however, not all policies are created equal. Guaranteed policies all generally provide the same coverage. While there are minor differences here or there, the price is the main thing you want to keep in mind.
Policies with guaranteed acceptance are already more expensive than other plans that have tight underwriting requirements. Still, some companies offer very affordable prices.
AIG offers excellent rates with top-tier coverage and is commonly our go-to recommendation because of the plan structure and additional benefits. Learn more about AIG’s plan structure and benefits.
Additional benefits included at no extra cost include:
- Temporary Accidental Death Benefit
- Chronic Illness Accelerated Death Benefit
- Terminal Illness Accelerated Death Benefit
While Gerber Life Insurance provides even lower premiums than AIG, they do not offer the additional benefits included in AIG’s plan.
Gerber does offer other plans in addition to coverage for end-of-life expenses. If you are in the market for a plan for a young child or a college-age young adult, they offer some nice options.
$10,000 of Coverage
$10,000 of Coverage
Captive vs. Independent Agencies
Captive Agencies: A captive agency is one like John Hancock or Allstate. These agencies are contractually obligated to sell products only from the one company that they represent. You will not be saving money by purchasing directly through a carrier. Instead, going with an independent agency will most likely save you money on your premiums.
Independent Agencies: On the other hand, an independent agency is not tied to just one company. They can represent as many providers as they wish. As a consumer, the main difference you need to know is that independent agencies can price check their products between the carriers they represent and a captive agent cannot.
Price checking or shopping around on your behalf will ultimately lead you in the direction of obtaining a better price and potentially better coverage.
How Willamette Life Can Help
Willamette Life is an independent agency that specializes specifically in final expense coverage.
This singular focus allows our agents to fully understand the specialty that each plan can bring to the table.
By representing various companies, each with several plan variations, this allows us best to serve our client’s unique and individual needs.
From Oregon to Georgia and everywhere in between, Willamette Life will get you covered.
Burial Insurance With AIDS or HIV: Final Thoughts
a. Affordable final expense insurance with AIDS or HIV is possible to obtain. However, there will be a 2-year waiting period imposed before full coverage can be awarded.
b. When it comes to selecting a company to take your policy out with, we recommend AIG due to their affordable rates and added benefits.
c. Even though you now know what plan you may need, it is vital that you speak with an independent agency, such as Willamette Life, to make sure you are getting the best coverage at the lowest possible rate.
Give Willamette Life a call at 844-576-0019
I’m the owner and founder of Willamette Life Insurance. Willamette Life specializes in Final Expense Insurance. We compare prices with different insurance carriers while finding the perfect match for your health and budget. This company was started to help educate the public on why Final Expense Insurance could be a great option for them and their family. We strive to be friendly, informative, and always have the client’s best interest as our top priority. Everything in this article is my own professional opinion and experiences I have had during my time in helping clients.