by Guest » Thu Jun 04, 2009 07:13 pm
What is the availability of life insurance for hiv patients? Are there any other Life Insurance companies that will insure people with HIV? Please advise.
Thank You
Thank You
Posted: Fri Jun 05, 2009 10:03 pm Post Subject:
If he dies in 24 months the death benefit is $10,500, correct? To say he has $50,000 of coverage is not accurate.
First of all, your math is not correct. It would be $10,763. Secondly, Since he lived for 24 months, he would get $50,000.
Do the math...the insurance company has...they NEVER lose on these policies EVER.
Gary, I already did the math for you. If he lives for less than 2 years, it is a 5% return. If he lives for between 2 and 6 years, it is a return of greater than 15%.
Insurance companies lose money on these policies all of the time. It's no different than any other life insurance. They lose money on lots of policies. They just don't lose in the aggregate. How do they make money on these policies? They are purchased by both unhealthy people who aren't dying and by dying people. In general, they make money on their unhealthy people. They lose money on their dying people. If only dying people bought the policies, the premiums would have to be much higher.
Please go back to my example and tell me why this is such a bad idea for someone who is supposed to live no longer than 36 months? Barring a miracle, my client will end up with somewhere between a 5 and 40% return.
Posted: Sat Jun 06, 2009 09:19 am Post Subject:
Why would an insurance company write life insurance for hiv patients at all if the risk is so high?
Posted: Sat Jun 06, 2009 01:52 pm Post Subject:
:P I sense a THREAD WAR brewing around life insurance for hiv patients over here!!! :wink:
For the General Public who read may this thread there isn't any right or wrong to Guaranteed Acceptance Life Insurance MODIFIED BENEFIT WHOLE LIFE.
This is just insurance agent difference in opinion between myself and Insurance Expert.
First of all, your math is not correct. It would be $10,763. Secondly, Since he lived for 24 months, he would get $50,000.
Okay, fine, almost, but let's be exactly correct.
Correct me if I'm wrong...in your $5,000 premium per year, $50,000 Guaranteed Acceptance Life Insurance MODIFIED BENEFIT WHOLE LIFE example.
If the person dies within the first two years the death benefit is limited to the return of premium PLUS 5% interest compounded annually.
Correct?
If they should beat the odds and be so fortunate as to die in the 25th month, the beginning of the third policy year they won, they beat the odds and the company pays out $50,000.
Correct?
OR if the person dies by accident the company pays the $50,000 from day one.
Correct?
Side bar:
Why would an insurance company write a policy at all where the risk is so high?
Math.
If a person is buying an individual life insurance policy WITHOUT submitting evidence of insurability, that very fact tells them you are HIGH RISK. For the very highest risk the company is simply giving you your money back plus interest. You could have actually had more money for your beneficiary during the first two years by buying a Fixed Annuity, 10% premium bonus contract, at MINIMUM 2% interest.
Now if you make it two years you're NOT that sick yet still uninsurable and will probably make it 10 years at which point your beneficiary is simply getting a return of the premium paid.
Now beyond 10 years, these Guaranteed Acceptance Life Insurance MODIFIED BENEFIT WHOLE LIFE policies, become a black hole.
You can actually pay more in premium than the death benefit. That NEVER happens with fully medically underwritten life insurance unless you attempt to keep term insurance past about age 80 which NEVER happens because it is simply cost prohibitive.
Let me tell you a true story and I'll name names.
My Mom bought a garbage Colonial Penn Guaranteed Acceptance Life Insurance MODIFIED BENEFIT WHOLE LIFE policy because Ed McMahon was the celebrity spokes person.
Premium was about $20 per month ($240 per year) for a $2,500 death benefit. She paid on that policy for 15 years.
15 years of premium times $240 per year equals $3,600 paid in premium and at the time of her death the death benefit BECAUSE of her own cash in the policy plus minimum interest was about $2,700.
That's $900 hundred dollars less in death benefit than the premium paid.
That's NOT life insurance.
That's a mathematical game disguised as life insurance.
:arrow: Allow me to quote myself... 8)
Guaranteed Acceptance Life Insurance MODIFIED BENEFIT WHOLE LIFE
This is a form of life insurance whereby the insurance company can legally rob you by having you screw yourself. You need to die on the first day of the beginning of the third policy year OR die by accident the day after the policy is issued.
Just like ALL millionaires in the USA need to die on December 31st 2010 to escape the massive 55% top Federal Estate Tax rate that will be imposed on January 1st 2011.
:D Oh,... and make sure the wife croaks too...it's real bad tax wise if she makes it past December 31st 2010! :shock:
....and now that I'm in FULL rant mode does anyone understand that 50% of the population of the USA supports 100% of the government AND the "other" 50% of the population...
Posted: Sat Jun 06, 2009 08:18 pm Post Subject:
Gary, sorry, but I think once again, this isn't going to be an issue to have a thread war. I think that we probably agree on this issue. I believe that guaranteed issue life insurance is usually a pretty bad deal.
It's just that about once a year, I come across a case in which it makes sense.
Posted: Sun Jun 07, 2009 12:04 pm Post Subject:
Gary, sorry, but I think once again, this isn't going to be an issue to have a thread war.
:P I haven't had a good thread war in soooooooo long I'm fearful my thread war skills may be eroding! :wink: 8)
I simply always try to separate sales talk from financial facts.
Now there's nothing wrong with sales talk as long as the financial facts are congruent with the sales talk.
Posted: Mon Jun 08, 2009 10:34 am Post Subject:
Hello Insurance Expert, if someone is young but HIV positive, would he then qualify for life insurance at standard rate?
Posted: Mon Jun 08, 2009 02:14 pm Post Subject:
Hello Insurance Expert, if someone is young but HIV positive, would he then qualify for life insurance at standard rate?
No. The standard life expectancy for a male is roughly age 78. The standard life expectancy of someone with HIV, even if young, is significantly lower (1-5 years?) HIV is an automatic decline with all insurance carriers on underwritten policies.
Posted: Mon Jun 29, 2009 06:45 pm Post Subject: Yes an HIV person can purchase Life Insurance
I am a registered financial planner, who was asked to set up a life insurance policy for someone with HIV. It took a long time with my team doing research to find a qualified insurance company who accepts HIV prospects.
We did it! If you would like assistance in getting life insurance for someone with HIV my team and I would love to help.
Jeran (Jer-in)
jjeran10[at]gmail.com
E-mail id deactivated for your safety reason
Posted: Mon Jun 29, 2009 06:48 pm Post Subject:
I am a registered financial planner, who was asked to set up a life insurance policy for someone with HIV. It took a long time with my team doing research to find a qualified insurance company who accepts HIV prospects.
We did it! If you would like assistance in getting life insurance for someone with HIV my team and I would love to help.
Jeran (Jer-in)
jjeran10[at]gmail.com
Is this a graded benefit plan? There is no way an underwritten life insurance policy would be issued on someone with HIV.[at]
Posted: Tue Jun 30, 2009 01:54 am Post Subject:
No. The standard life expectancy for a male is roughly age 78. The standard life expectancy of someone with HIV, even if young, is significantly lower (1-5 years?) HIV is an automatic decline with all insurance carriers on underwritten policies.
Don't confuse being HIV + with having AIDS. The life expectancy for a young person who is HIV+ is actually more than 20 years. In the 90's, the life expectancy for someone with AIDS was less than 5 years. I assume that it is longer now, but I don't know.
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