Life Insurance With HIV or AIDS in Canada

Getting life insurance with human immunodeficiency virus (HIV) or acquired immunodeficiency syndrome (AIDS) can be challenging, but it is still possible. Many Canadian life insurance companies provide life insurance options to difficult-to-insure Canadians, including those with an HIV or AIDS diagnosis.

Human immunodeficiency virus (HIV) and acquired immunodeficiency syndrome (AIDS) are illnesses that spread from the bodily fluids of an affected person and are commonly contracted as a sexually transmitted infection. This helpful guide will delve into all you need to know about how an HIV and AIDS diagnosis affects life insurance in Canada and how you can get life insurance coverage despite your diagnosis.

In this article: 

• Can You Get Life Insurance With HIV or AIDS
• Factors Life Insurance Providers Consider if You Have HIV or AIDS
• Example of Key Criteria a Life Insurance Provider May Consider for Those with HIV
• Types of Life Insurance Available to Canadians With HIV or AIDS
  • Guaranteed Issue Life Insurance
  • Simplified Issue Life Insurance
  • Term Life Insurance
  • Permanent Life Insurance
• What to Do if You Are Denied Life Insurance
• What Happens if You Fail to Disclose an HIV or AIDS Diagnosis
• What Happens to Existing Life Insurance if You Are Diagnosed With HIV or AIDS
• Case Study Examples
• Frequently Asked Questions (FAQs) About Life Insurance With HIV or AIDS

Can You Get Life Insurance With HIV or AIDS

Yes, those with an HIV or AIDS diagnosis are still eligible for life insurance and can choose from a variety of life insurance plans the same as any other Canadian. However, if you are interested in a traditionally underwritten life insurance policy you will be required to disclose information about any medical conditions you are diagnosed with, including HIV or AIDS.

Premium costs, coverage maximums, and policy approval will be considered on a case-by-case basis and will depend on how your diagnosis specifically affects you. While you may be required to pay higher premiums for certain policies and in severe cases you may not qualify for certain life insurance plans, even the most difficult-to-insure Canadians can still qualify for life insurance through a simplified issue or guaranteed issue life insurance policy. These policies are ideal for those with more severe pre-existing conditions who would rather not discuss their medical history as these plans do not require a medical exam and ask limited to no medical questions.

Factors Life Insurance Providers Consider if You Have HIV or AIDS

Whether you’ve recently been diagnosed, or have been for a longer period, the underwriting process for clients with HIV or AIDS diagnoses often varies between life insurance providers. Medical underwriting is the examination of the applicant’s health and medical history. Fully underwritten insurance policies typically require a medical exam including a blood and urine test, an attending physician’s statement (APS), and answers to health-related questions.

The factors that life insurance providers consider if you have HIV or AIDS are as follows:

• Overall Health: Life insurance companies will consider your overall health with considerations such as other pre-existing conditions, obesity, tobacco consumption, etc.
• Date of Diagnosis: When you were diagnosed is also important to insurers, since this can offer them information on whether you already have AIDS or are at higher risk of progressing to AIDS with a late HIV diagnosis. It can also demonstrate if you’ve been able to successfully prevent HIV from progressing through treatments.
• Symptoms and Severity: Insurance providers will consider any present symptoms that adversely affect your health and the severity of these symptoms.
• Treatment Plan: To better understand risk, life insurance companies will also ask about any treatments or medications you are currently using to treat any illness you have such as HIV or AIDS.
• Family Health History: Life insurance providers will also want to know of any health conditions that run in your family to determine risks related to other pre-existing conditions.

Example of Key Criteria a Life Insurance Provider May Consider for Those with HIV

Many life insurance companies are willing to offer traditionally underwritten policies for Canadians with HIV or AIDS. One such example is, Manulife Financial which offers a decreased need for routine blood profiles for life clients aged 18 to 40 with up to $1,000,000 in coverage or clients ages 30 to 65 with up to $2,000,000 of coverage. The key criteria Manulife Financial considers for patients with HIV are as follows:

• Applicant is compliant with antiretroviral therapy for at least 5 consecutive years.
• Applicant works with a specialist.
• Undetectable viral load for the last 2 years
• Current CD4 count ≥350
• Tested negative for Hepatitis B & C with no history of hepatitis
• No viral resistance to treatment
• No history of IV drug use or other substance abuse
• No history of coronary artery disease, diabetes, or cancer
• Not affected by any AIDS-defining illnesses

Types of Life Insurance Available to Canadians With HIV or AIDS

Depending on the details of your diagnosis and the insurance provider you apply through, there are different policy types offered that you may qualify for. The standard policy types are traditionally underwritten term life insurance or traditionally underwritten permanent life insurance. However, term and permanent life insurance can also be underwritten as a guaranteed issue or simplified issue life insurance policy, as these policies are tailored for difficult-to-insure individuals.

The type of life insurance that is right for you will depend on your coverage needs and financial goals. The types of life insurance available to Canadians with HIV or AIDS are outlined below.

Guaranteed Issue Life Insurance

Guaranteed issue life insurance is a great choice for Canadians who are difficult to insure due to an HIV or AIDS diagnosis, or other factors that increase their difficulty to insure such as other pre-existing conditions, hazardous occupations, criminal record, etc. Unlike traditionally underwritten policies, an attending physician’s statement (APS), medical examination, and medical questions are not required as part of the application process. However, because of the increased risk to the insurer, this type of coverage tends to be more costly and offers less maximum coverage than a fully underwritten policy.

Benefits of Guaranteed Issue Life Insurance

• Easier to qualify for than traditional policies
• No medical examination, questions, or APS required
• Shorter waiting periods for approval
• Simplified and more accessible application process

Simplified Issue Life Insurance

Simplified issue life insurance is another great option for difficult-to-insure Canadians. This is because, similar to guaranteed issue life insurance, this policy type asks applicants fewer questions and does not require a medical exam or attending physician statement (APS) to qualify. The main difference between simplified issue life insurance and guaranteed issue life insurance is that simplified issue life insurance still requires applicants to answer limited medical questions. This makes it a good option for those with HIV or AIDS who are still in decent health and are not severely impacted by this diagnosis.

Benefits of simplified life insurance 

• Easier to qualify for than traditional policies
• More affordable than guaranteed issue life insurance
• No medical examination or APS is required
• Medical questions are limited

Term Life Insurance

Term life insurance is a type of life insurance that offers coverage during a specified term length, often 10, 20, or 30 years. With term life insurance, you pay premiums monthly or annually so that if you pass away while the policy is still active, your beneficiaries receive a death benefit payout. Often these policies can be renewed for a new term up to a specified age and may also be convertible into permanent insurance. This type of insurance is the most popular in Canada as it allows you to gain coverage during times when you need it most and is also the most affordable option for life insurance.

Term life insurance policies can be underwritten as simplified issue life insurance but if applicants are interested in traditionally underwritten term life insurance, eligibility can be more challenging for those with HIV or AIDS and approval will depend on the specific policy requirements.

Benefits of term life insurance

• Typically the most affordable type of life insurance
• Flexible term lengths, coverage amounts, and optional riders
• Term lengths can align with current financial obligations
• Potential to renew terms as needed or convert to permanent life insurance

Permanent Life Insurance

Permanent life insurance is a permanent type of life insurance that offers lifetime protection to policyholders. This type of policy also has the potential to accumulate a cash value amount through universal or whole life insurance policies. Due to the permanent nature of this type of policy, premiums tend to be more costly than term life insurance policies.

Permanent policies may be offered as guaranteed issue or simplified issue life insurance. Traditionally underwritten permanent life insurance policies will require applicants to undergo a more thorough look into their personal and health history.

Benefits of permanent life insurance

• Lifetime coverage often with level premiums
• Flexible premium payment options
• Potential to accumulate a cash value within the policy
• Can be used when estate planning as a tool to offset capital gains taxes

What to Do if You Are Denied Life Insurance

Life insurance applications can be denied for a couple of reasons:

• The applicant intentionally or unintentionally omitted information from their application or included false information.
• The applicant falls outside the set age range requirement for the policy they applied for.
• The applicant applied for more coverage than they are deemed financially able to pay based on annual income, net worth, and credit history.
• Medical exams or answers to medical questionnaires flagged the applicant as ineligible.
• Lifestyle factors such as dangerous occupations, hazardous hobbies, being obese, or smoking.
• Addiction issues such as drug addictions or alcoholism.
• Having a criminal record or issues with your driving history such as a DUI.

If your life insurance application is denied this can make it more difficult to obtain life insurance in the future, so it’s better to be truthful and accurate on your application and to be sure you are applying for a policy you are eligible for.

If your application has been denied, there are three steps you will need to take before trying to apply again:

1. Find out why your application was denied

The very first step you should take after discovering your life insurance application has been denied is to reach out to the insurance provider to determine the reason for the denial. Knowing the reason why your application was denied can provide guidance and insight for your future applications and can help you determine your next steps. If you provided truthful and correct information on your application and you were denied due to health reasons, lifestyle reasons, financial reasons, etc. then you might need to reassess what kind of life insurance you are eligible for and submit an application for a different policy.

2. Discuss your options with a licensed life insurance agent or broker

If your application has been denied for reasons out of your control, you should reach out and discuss your options with a licensed insurance agent or broker. An insurance agent works directly for a specific life insurance provider whereas a life insurance broker represents consumers and can help you determine which policy is best from a variety of life insurance providers.

Life insurance brokers can be hired at no cost to you, instead, they are paid a commission from the life insurance provider you decide to get a policy through. By speaking with an agent or broker you can get expert insight into your specific situation, receive advice on which policies you will likely qualify for, and get help with the application process to decrease the risk of another application denial.

If you are interested in obtaining a life insurance broker you can always contact us online or give us a call at 1-877-654-6119 so that we can help you discover which policies best represent your insurance needs and help prevent any future application denials.

3. Submit a new application for a policy that better represents you

After speaking with an expert life insurance agent or broker you should have a much better understanding of the types of policies that best represent your life insurance needs. With this in mind, you can submit a new application for a policy you are more certain you will qualify for based on your age, medical history, lifestyle factors, and so on.

What Happens if You Fail to Disclose an HIV or AIDS Diagnosis

It’s important to be truthful and upfront about having an HIV or AIDS diagnosis when applying for life insurance in Canada. While it’s fair to worry about increased costs or application denial caused by something out of your control, such as a medical condition, providing inaccurate information about your current health can lead to many issues beyond application denial.

Life insurance providers collect personal and health information directly from applicants and traditionally underwritten policies will require applicants to undergo a medical exam and provide an attending physician’s statement (APS). An APS is a questionnaire that an insurance provider will require your physician to complete that offers a summary of any relevant medical information from your health records that the insurer deems important. Insurance providers can also access databases such as the MIB (Medical Information Bureau) to confirm any medical information they have or have not collected from the applicant.

It is very important to ensure the accuracy of the information you submit to a life insurance provider. If your insurance provider determines that information was inaccurately reported or omitted, they have the right to terminate your policy and refuse to pay out a death benefit to your beneficiaries. In addition to this, if it is determined that you intentionally offered significantly incorrect information it can be considered fraud and affect your ability to obtain life insurance coverage in the future.

What Happens to Existing Life Insurance if You Are Diagnosed With HIV or AIDS

There is nothing to worry about if you have existing life insurance coverage when you are diagnosed with HIV or AIDS as your life insurance provider is not allowed to revoke your life insurance coverage or increase your premiums. However, certain policies may have exclusions and clauses related to medical conditions diagnosed after a policy is in place so it is important to review your policy or communicate with your provider for clarification.

If you have term insurance, it is also important to note that when you renew your term or decide to convert your policy to permanent life insurance you will be required to share any new health information with your provider, including any new diagnoses, which can result in higher premiums and other challenges.

Case Study Examples:

Here are two helpful case studies outlining the process followed by these Canadians diagnosed with HIV/AIDS who are interested in life insurance.

Case Study #1: Martin

Martin is a 45-year-old married man who is interested in purchasing a life insurance policy to offer financial protection to his wife in the event of his death but worries how his diagnosis of HIV will affect his ability to obtain coverage.

Here is what Martin considers when determining his coverage needs:

• Martin and his wife Mary currently have $400,000 left on their mortgage and anticipate being able to pay it off in 20 years.
• He and his wife currently do not have any dependents or other financial obligations.

Martin and Mary discuss their options with a financial advisor who helps them first consider what type of life insurance they need.

• A joint-first-to-die policy is the best option for them since this type of policy covers both Martin and Mary and provides a death benefit payout to the surviving spouse if either of them were to pass away, ensuring that neither of them would have to pay the mortgage without financial help from the other.

Now that they have a better understanding of their coverage needs, Martin discusses his HIV diagnosis with his life insurance broker. Since Martin was diagnosed a few years ago, works with a specialist and keeps up with his antiretroviral therapy (ART) treatments, currently has a CD4 cell count of around 400, and is in otherwise good health with no other pre-existing conditions or issues with family health history Martin will likely qualify for a traditionally underwritten policy.

With all of this considered, Martin and his wife successfully get approved for a term joint-first-to-die life insurance policy with $400,000 of coverage and a term length of 20 years to match the amount and length of their mortgage payments.

Case Study #2: Ada

Ada is a 60-year-old woman who was diagnosed with HIV late in her life after it had progressed significantly. She works with an organization that supports Canadians with HIV and AIDS. In addition to helping cover her funeral costs, she would like to take out a life insurance policy so that she can make a charitable donation to the organization after she passes.

Here is what Ada considers when determining her coverage needs:

• Ada anticipates her funeral costs will be around $10,000.
• Based on the future goals for the charity organization, Ada decides she would like to donate $40,000.

Ada discusses these goals with a trusted financial advisor who helps her understand her options. Since Ada’s CD4 cell count is around 300, she has only started antiretroviral therapy (ART) treatments in the last two years, and she also struggles with respiratory issues and obesity she likely won’t qualify for traditionally underwritten life insurance. Because of this, she and her financial advisor agree that a guaranteed issue life insurance policy with permanent coverage of $50,000 would best meet her needs.

Ada quickly gets approved for a guaranteed issue whole life insurance plan after a very easy application process with $50,000 in coverage.

Frequently Asked Questions (FAQs) About Life Insurance With HIV or AIDS

Finding the right life insurance for you

Applying for life insurance when you are diagnosed with HIV or AIDS can be challenging but it is still possible. If you would like help with the process you can always consider working with a life insurance broker who can help you understand your options and create the perfect life insurance plan and package for your needs.

At Protect Your Wealth, we’ve been providing expert advice for all types of life insurance, including no medical life insurance, term life, critical illness insurance, or permanent life insurance, since 2007. As your life insurance broker and financial planner, we work with you to create a personalized plan for you and your family, or business that covers all your needs.

Contact Protect Your Wealth online or call us at 1-877-654-6119 to talk to an advisor today. We’re proudly based in Hamilton, and service clients across Canada in Ontario, Alberta, Manitoba, and British Columbia including areas such as Kitchener, Burnaby, Brandon, and Ottawa.