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Qualifying for Life Insurance when you have HIV or AIDS.

We are often called by people who have tested positive for HIV, or have been diagnosed with full-blown AIDS, yet are hopeful that they might still be able to qualify for a decent life insurance policy.


In the world of life insurance, these two pre-existing medical conditions are completely different, although they will both be treated in the same way. Unfortunately, this means that they will both automatically be declined when an application for a simplified issue or fully underwritten term, or a whole life insurance policy is received.


It should however be noted that as a result of recent advances in the treatment of patients that have been exposed to the HIV virus, various life insurance companies are “talking” about the possibility of treating those who have tested positive. The proposed approach would be similar to the one used for patients that have tested positive for hepatitis. In some cases, this could mean that the applicant would be eligible for life insurance, at least in theory. We are however currently not aware of any life insurance company that is already accepting applications from those who have tested positive for HIV. Having said that, Prudential Life Insurance seems to be the most vocal in this area, so it may be worth checking with them to find out where they stand on this issue.


Now that we’ve…

Mentioned the fact that it’s going to be very difficult, if not impossible, to qualify for a whole life or tradition term insurance policy, let’s discuss some options that may be available for people who have tested positive for HIV.

We’re sure you’ve noticed that here at InsuranceBrokersUSA, we are all about trying to help people find cover wherever possible!

Alternative Policies.

As people who have tested positive for HIV, or have full-blown AIDS, will not be eligible for a whole life or traditional term insurance policy, we need to investigate various “alternative” insurance products in an attempt to fill the void.

To do this, we’ll have a look at two different products that do accept those who have tested positive for HIV, or have AIDS. The first we’ll discuss is called a Guaranteed Issue Life Insurance Policy.

Guaranteed Issue Life Insurance Policy.

A guaranteed issue life insurance policy is a policy that does not require an applicant to answer any health related questions, or take a medical exam in order for them to qualify. These policies are normally used for those who are not able to qualify for any other type of life insurance.

These policies are usually small whole life insurance policies and are meant to cover only final expenses and burial costs. Coverage typically ranges from $3,000 to $25,000.

The best final expense and burial insurance companies normally offer guaranteed acceptance policies. If you require more information on this type of coverage, don’t hesitate to give us a call today.

Available with no health exam and no questions asked …

This means that if are a US citizen and you’re between the ages of 45 and 85, you WILL qualify for this type of life insurance policy. Please note that this product may not be available in your state.

Before you get too excited…

Guaranteed issue life insurance policies always have 3 potentially major disadvantages for the applicant.

Guaranteed Issue Life Insurance Policy Disadvantages:

  1. These policies will usually only provide a maximum of $25,000 dollars in coverage.
  2. Dollar for dollar, these policies are one of the most expensive life insurance policies available.
  3. These policies will always contain what is referred to as a Graded Death Benefit.

Graded Death Benefit.

A graded death benefit is a clause that is written into a guaranteed issue life insurance policy. This clause states that for the life insurance policy to pay the death benefit for “Natural” causes, the insured will need to live for a set period (typically 2 to 3 years) after the policy becomes effective.

Should you die of natural causes (due to illness) during this “waiting period”, your life insurance policy WILL NOT pay the death benefit.

Although this may sound like an appalling deal, it’s important to understand that without a graded death benefit, the insurance companies would simply have no way of protecting themselves from insuring someone who was just days away from dying.

Accidental Death Policies.

A second option you might want to investigate is what is called an Accidental Death Policy. These policies are not considered “True Life Insurance policies” as they don’t provide coverage for death due to any type of illness (natural causes).


An Accidental Death Policy will only cover you if your death is caused accidentally, i.e. in a motor vehicle accident, through a natural disaster, or slip and fall.

The downside of this type of policy is clear – you will have no coverage for natural causes such as heart disease, cancer, stroke etc., but they will provide solid coverage in the event of an accidental cause of death. In our opinion, their relative affordability makes them worth looking at.


We’ll be the first to admit that we’ve covered much information in this article and we don’t expect you to be an expert at this point. What we do however hope is that you take away from this article that just because you’ve tested positive for HIV or have AIDS, it doesn’t mean that you can’t get any insurance at all.

This is why…

It’s important to give us at InsuranceBrokersUSA a call before making any decision one way or the other. Before purchasing life insurance, let us help you be 100% certain you make the right decision for both you and your family.

You see…

At InsuranceBrokersUSA, we have deliberately chosen to stay an independent life insurance brokerage.  This enables us to work with numerous different life insurance companies, which in turn means that when we need to help even the most challenging of clients, we’ll often have options that will work, no matter what.

Don’t delay – give us a call right now and see what we can do for you!

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