As of 2005, there were 58,000 Canadians living with HIV/AIDS. Yet, the life insurance market has traditionally been closed to those with immune system deficiencies.
Why have the life insurance floodgates opened to those with AIDS, who before couldn’t obtain it? Guaranteed issue coverage has no medical tests and no health questions. So, the HIV question is not asked.
Good news right?
Still, There are three caveats that come with guaranteed issue coverage:
1) The premiums are quite high.
2) The available face amounts are low, but not only that, the coverage has a two-year waiting period. Meaning, if the insured passes away in the first two years of the policy by a non-accidental death, the death benefit is limited to a return-of-premium, and in some cases, additional interest.
Simplified issue life insurance also has no medical tests, but, unlike guaranteed issue, has three to 12 health questions. The premiums are lower and the face amounts are higher. Some simplified policies pay out immediately and others have a two-year waiting period.
There are two leading providers of simplified life insurance coverage in Canada and they are Assumption Life and Canada Protection Plan. Of the two leaders, Canada Protection Plan’s deferred life and deferred term policies have the most favorable questions for those with HIV and AIDS.
The questions read as follows:
Within the past three years, has the insured been treated for unusual chronic infection, including HIV and AIDS.”
As part of Canada Protection Plan’s Deferred Term plan, which offers face amounts up to $100,000, the question is even more favourable:
“Within the past three years, has the insured been diagnosed with, or started treatment for, unusual chronic infection or immune system abnormality, including HIV or AIDS.”
For more details, you can contact us at 1-866-899-4849.