HIV Life Assurance, HIV Life Insurance and HIV Mortgage Blog

Positive Progress by Chris Morgan

During the last ten years I’ve lost count of the amount of phone calls that I’ve received from HIV Positive people asking for Life Assurance to cover their mortgage or provide protection for their loved ones. Up to now the standard reply has been to say that cover is not available at this present time, but the insurance industry is working on a solution.

Available Cover

It’s fair to say that in the past there has been the odd attempt to deliver HIV Life Assurance, but in my opinion the company involved was dramatically over charging applicants for a very poor product. It has to be said that the new product from Prudential completely changes the landscape for people with HIV to obtain Life Assurance.

Product Criteria

For the first time there is a Life Assurance product that offers useful cover at realistic premiums for people living with HIV. The product that is currently available has a maximum sum assured of £250,000 and a maximum term of 10 years. At this moment in time there is a minimum age of 25 and a maximum age of 50.

Underwriting Criteria

There is only one draw back to the policy, as it initially only covers a limited range of people living with HIV, but the aim is to broaden the qualifying criteria to cover more people as time progresses. This seems reasonable considering the lack of claims experience around this new innovative type of insurance.

Qualifying Criteria

• Applicants must be aged between 25-50
• Applicants should not have contracted HIV through intravenous drug use
• Applicants must be receiving Highly Active Antiretroviral Therapy (HAART) in the UK, commenced treatment in the last five years, been receiving treatment for at least six months.
• The treatment should result with increased CD4 cell count and viral load should be suppressed to near undetectable level.
• Applicants must be Hepatitis B and C Negative

Case Study

We’ve recently submitted our first case and are pleased to report that they have treated the applicant with complete respect. As with other applications with pre existing medical conditions the insurer has requested a medical report, but in this instance from the client’s specialist confirming their compliance with treatment.

Name: Clinton

Occupation: Management Consultant

Age: 35

Lives: London

Sum Assured: £100,000

Term: 10 Years

Standard Premium: £6.16 monthly

Final Premium: £68.79 monthly

Loaded Premiums

Most applicants applying for Life Assurance with an existing chronic medical condition will be asked for an additional premium, commonly referred to as a ‘loaded premium’. The new HIV Life Assurance policy makes useful levels of insurance achievable. The exact premium varies with each case that is submitted and depends on individual circumstances.

Applying for Cover

The new HIV Life Assurance policy is only available through brokers and intermediaries, so that applicants can obtain advice before submitting their application. The underwriting criteria is quite detailed, so the insurance company involved are urging potential applicants to seek advice before making an application.

Compass Independent

So, for the first time in over a decade,

Compass Mortgage & Insurance the countries leading advisers to the Gay and HIV Communities are now able to place Life Assurance for people living with HIV for up to £250,000, within the specified criteria detailed in this article. We would be very happy to provide a quotation for those looking to take advantage of this exciting new product.

Chris Morgan is the Marketing Manager of our sponsors Compass Mortgage & Insurance Services and was a consultant to the Association of British Insurers HIV Working Group for over five years. He may be contacted by phoning 0845 474 3075 or by email chris@compassindependent.co.uk Web Address: www.compassindependent.co.uk

Positive Insurance – By Chris Morgan

There’s great confusion over the types of Insurance that HIV Positive people can obtain. Here’s the Positive Finance guide to personal insurances. Home and Car Insurance have not been included, as these are not related to your health status and can be obtained without medical underwriting.

Life Assurance

All life Assurance Companies ask whether you are HIV Positive or have Aids. Upon answering this question, some companies will decline for cover. However, currently around a third of insurers will consider applications from HIV Positive people.

This is the question you will be asked on application forms. “Have you ever tested positive for HIV/AIDS or are awaiting the results of such a test?” Until recently insurers have not appeared interested in insuring HIV Positive people.

Therefore the market for HIV Life Assurance is relatively new and still developing. If you took out Life Assurance and you were HIV negative at outset and have subsequently become HIV Positive, then your policy is likely to still be valid.

Critical Illness / Income Protection / Sickness Cover / Private Medical Insurance

When applying for any of these types of insurance you will be asked the same question as if applying for Life Assurance. Insurers are still reluctant to offer cover to people who are HIV Positive on these ‘health’ related policies.

Unlike Life Assurance the benefits on these types of policies paid do not cover HIV and AIDS. In many circumstances it would be difficult to determine whether or not a claim was ‘HIV related’, or not.

However, many Critical Illness Cover policies do normally cover medical professionals, in the event of industrial accident. It’s very important to check the terms and conditions if you specifically want this type of cover.

Travel Insurance

Many Travel Insurance policies exclude people with AIDS and HIV; care should be taken when buying cover for your trip. You should seek specialist advice from an insurance provider that takes into consideration ‘Pre- Existing’ medical conditions.

Many policies offered through High Street Travel Agents do not consider the needs of people with HIV. You should look at the terms and conditions closely and pay special attention to any pre existing condition clauses.

This is an example of a generic exclusion, normally in a policy brochure.

“Any claim arising from heart-condition, high blood pressure or breathing problems, or a malignant disease that has been diagnosed, existed or treated before you bought the policy, unless we agree in writing”

There are only a few Travel policies that have specific HIV / AIDS inclusion clauses. They are underwritten on the basis that conditions are declared up front and discussed with the underwriting team.

These policies will cost more than standard premium rates, but are covering medical expenses whilst you’re abroad. Some offer single trip cover, whilst others offer annual trip insurance, useful if you travel more than a couple of times a year.

Loan & Credit Card Protection

Many people take out a personal loan without being offered Protection Insurance. This insurance can be expensive in relation to your monthly loan payment. Especially if the benefits are of little use to you!

These policies pay benefits in the event of sickness, accident, and unemployment.

Policies excluding HIV and AIDS are commonplace. Clauses and Exclusions are not very clear and anybody taking these types of policies should investigate thoroughly before signing.

You should not feel that insurance is an obligation of the loan and if pushed by the provider to take cover. You should point out that you’ve applied for cover before and been declined due to a pre-existing medical condition. The lender does not need to know any more than that.

Mortgage Repayment Protection

Mortgage Repayment Protection is designed to pay benefits in the event of you being made redundant or not being able to work due to sickness.

Most policies contain exclusion clauses for HIV and AIDS for both pre-existing conditions and diagnosis after starting the policy. Most policies will ask on the application form if you’ve tested Positive for HIV / AIDS. If you answer this question, you will be declined for cover.

Unemployment protection is relevant to people with HIV as this is not a health related policy and is linked to redundancy. You should not take a Mortgage Repayment Protection Policy that covers both Unemployment and Sickness. You should seek a policy that allows you to just cover Unemployment on a stand-alone basis.

Where to get advice?

Chris Morgan is the Marketing Manager of our sponsors Compass Mortgage & Insurance Services and was a consultant to the Association of British Insurers HIV Working Group for over five years. He may be contacted by phoning 0845 474 3075 by email chris@compassindependent.co.uk or Web www.compassindependent.co.uk

Insuring Positive People – By Chris Morgan

First published in 2004 and rewritten August 2010

This ‘Classic’ article from Positive Finance was first published in 2004 and it sums up how life used to be for those HIV Positive people seeking Life Assurance. It’s interesting to read, because it sums up just how far we have come.

Even though the market for HIV Life Assurance is still developing, it stil seems almost like a miracle that the Insurance industry finally now offer this product. Visit the other articles on this blog to find out if you qualify for HIV Life Assurance.

So, here’s a glimpse of what the world used to be like back in 2004 ….

PAST

Life Assurance cover for People living with HIV is the most frequently asked question that I’m unable to answer. People with families, people with partners and financial needs. The amount of business that I’m forced to turn away hurts. The fact that I’ve been unable to solve the problem so far hurts even more! There are few financial advisers in the UK with as much specialist knowledge of this market. There are few advisers who have such an insight into the personal financial needs of Positive people. It’s not the fact that I don’t want to provide life assurance for people with HIV. It’s not an easy job persuading life assurance underwriters to accept a perceived additional risk

PRESENT

Life Assurance

Insurance is a form of pooled security. The contributors all pay into the pot in the knowledge that not all of them will claim. The unfortunate ones that result in a claim, leave a brighter financial future for their loved ones.

So…….

I find the life companies attitude difficult to comprehend. After all, their business is covering risk to the community. Existing Home Insurance, Critical Illness and Travel policies all pool the risk involved, with the company taking out money for themselves – known as profit.

What’s my point you may ask?….

These companies do not have to treat people with HIV within their standard underwriting procedures. Positive people would probably be willing to cover each other, with their own pool of provision. In my experience people with HIV would probably be prepared to accept a few conditions, if it meant obtaining cover for the first time. From past conversations with potential clients, this would appear to be the case.

There have already been major breakthroughs in certain types of insurance.

TRAVEL

Many companies have managed to pool the risk involved with annual trip insurance. There are lessons to be learnt here, as medical related cover is provided in the form of expenses. These policies insure against injury/illness and hospital confinement as an inpatient. The re insurers behind each of these policies all assess risk in a different way. They ask a series of questions relating to past health, medication and cell count. They have then tailored their policies to appeal to different sections of the HIV community. Some charge a higher excess, some a higher premium and others offer lower amounts of cover. They are all profitable products to each individual provider, as they would not be able to continue offering their valuable services in the future, if they were not.

Chris also highlighted current examples of perceived higher risk groups that were able to obtain life assurance already …..

It didn’t seem fair that people with HIV were unable to get insurance.

SENIOR CITIZENS

There are specialist life cover plans for the more senior citizen. Correct me if I’m wrong, but this group of people are visibly, statistically and practically closer to “The Event”. They are still able to obtain insurance even at the ages of between 65 and 70.

These types of plans offer peace of mind through lower sums assured and deferred premiums. The individual is required to pay, say 12-24 months premiums before full benefits are offered. The premiums are returned if they die before their qualifying period is up. It’s not a perfect solution, but many are simply grateful to obtain some form of provision. This type of product is a great reassurance to senior citizens and provides a valuable service. I’m sure that companies in this market avoid making a financial loss, whilst providing this service.

DANGEROUS SPORTS

Most insurance companies cover activities that are considered to be dangerous. Divers. Private Pilots and Motor Racing Drivers are normally required to complete a further questionnaire on application. They are asked frequency of activity, where they perform and relevant qualifications/experience. The underwriter then assesses the case individually and makes an offer of acceptance to the applicant. This normally results in the policy being offered at a higher premium. Again, I’m sure it’s unusual for an insurance company to place themselves in a loss making position.

HEALTH RISKS

Insurance companies already cover higher health risks. If someone has recovered from certain forms of cancer, or…if someone suffers from arthritis of the joints it does not mean they cannot obtain life assurance. In each case there is a greater and noticeable risk, either of re-occurrence or incapacity leading to further illnesses and of course death. The companies handle the extra risk by again charging higher premiums. My advice to people in these situations is to take cover, as their need is obviously greater. The client will usually accept the company’s offer on my advice.

Positive Finance and Chris Morgan have been at the forefront of the campaign for HIV Life Assurance for over a decade …..

THE FUTURE

Don’t get me wrong, I’m not directly trying to compare people who are Positive to any one single group detailed above. What I’m saying is that each of these areas have lessons to underwriters that could be applied to provide policies for HIV people. Elements of these current insurable risks could point the way to making the transition from uninsurable to insurable. My point is that insuring higher risk is a lucrative market, with possible higher profit margins for any company that decides to take the plunge. If people with HIV were at least given a product option they would have been given the right to choose.

So what would a possible product look like? Here are a few suggestions. I have other ideas, but at this stage do not wish to spoil any future thunder.

SO, did any of our vision come true?

• A period of contributions prior to qualification for full benefits, say 24 months. If the worst were to happen during the 24 months a full return of contributions paid to date. (NO, The new HIV Life Assurance policies cover people from Day One)

• Could have a limited sum assured of maybe £10,000- £20,000 to start with. Option to increase cover after a certain length of time of satisfactory health and contributions. (YES, some of the new HIV Life Assurance policies do limit sum assured)

• Varying levels of premium payable, depending on current and past health record at time of application. Doctor’s Report sent to GP with list a specific questions to establish current health status. (YES, HIV Life Assurance does require questions to be sent to your specialist)

• Further medical possibly required to satisfy specific concerns if report does not satisfy all requirements. (YES, HIV Life Assurance requires blood testing in certain circumstances)

• Policy could be designed to cover fixed term needs. i.e. mortgage or child education (YES, 10 years is the maximum fixed term for HIV Life Assurance at this moment in time)

All of these points, individually, in partnership or collectively could figure in the key features of my prototype policy. It’s up to the underwriters and re-insurers to give the community a product. People with HIV can then decide if it meets their needs. Due to past enquiries I suspect they would rather have some form of cover than not.

So here’s my challenge to all of those actuaries, re-insurers and underwriters out there…… Go on I dare you!

Positive Finance, the Finance Website and Now Blog for people living with HIV are very proud to have led the campaign for HIV Life Assurance and this article proves that we were in fact 5 years ahead of our time in 2005.

 

Most of our suggestions were taken on board by the Life Assurance industry, with our editor Chris Morgan sitting on the industry HIV Working Group that made HIV Life Assurance possible during the 5 years of our campaign.

 

If you require HIV Life Assurance advice please contact our sponsors Compass Mortgage & Insurance Services. They may be contacted by phoning 0845 474 3075 or by email enquiries@compassindependent.co.uk

 

Their website is www.compassindependent.co.uk

Getting A Mortgage If HIV Positive – By Chris Morgan

First Published in 2004 and rewritten in September 2010

POSITIVE MORTGAGES

Many HIV positive people avoid applying for a mortgage, due to fear that they will be declined. The fear of personal questions about their health, and the worry of being declined, means that many avoid buying a home.

It’s widely believed that a persons HIV status will be seen as a risk too far for the bank and their application would be declined. The gay community especially, has been led to believe that they are unable to buy a property without a HIV test.

The fact is that no mortgage lender actually asks about HIV and Aids on their application form. Their questions relate to financial, residential and credit history only. If this is the case, why do many HIV positive people have difficulty raising finance?

PERSONAL QUESTIONS

Life assurance, Critical Illness and Sickness Cover applications, all carry health question and specifically ask if you’ve tested positive for HIV and AIDS. ****** You will not obtain any of these insurance’s upon answering, “yes” to this question. As many mortgages, have associated insurance this could jeopardise your chances of getting the finance. ******

******* The New HIV Life Assurance products now mean that people can potentially obtain Life Assurance if they are HIV Positive. This article shows some of the repression that people with HIV have faced over the last decade. Visit some of the other articles on this blog to find out more about HIV Life Assurance *******

BANKS

Many Banks and Building Societies will interview any potential borrower before advancing funds. During this meeting, the bank employee will build a rapport, assess your needs and offer all the associated products that go with the mortgage.

Many of these products come strongly recommended, and sometimes are even a condition of the loan. This is where problems for positive people can start. Trying to explain to the mortgage adviser that you do not want life assurance, and finding a valid reason, without revealing status, can be a difficult. Especially if the adviser is target driven and persistent.

MORTGAGE BROKERS

Mortgage Brokers and Financial Advisers can also prove tricky, as they also tend to offer life assurance as part of any deal. Commission is higher on insurance, than mortgages and they therefore will be keen to cross sell.

Many positive people again feel pressured, confused, even frightened, by insistent advisers. They’ve sometimes even been known to sign for insurance, on a lie about their status.

MORTGAGE OPTIONS

There are many mortgage lenders that accept applications, without condition of life assurance. It’s just a case of knowing which to approach? The only consideration of most lenders is your affordability. If you meet their financial criteria, that is all that matters. `

They will ask for a deposit, proof of address, normally in the form of utility bills, proof of earning (payslips or accounts), and proof of identity.

Some Positive people will have the right to buy their Local Authority property and many mortgage lenders see this is a very low risk situation. The discount offered by the local authority will provide ample security.

It should be noted that if benefits are someone’s only source of income, Lenders will not advance funds. They would require another form of income alongside. Either Self-Employed, Full-Time or Part-Time earnings.

AVOIDING INSURANCE

If you find yourself in a difficult position regarding insurances, you should tell the Bank, Building Society, or Financial Adviser – that due to past health issues, you’re unlikely to obtain cover. Explain that you’ve tried to obtain cover in the past and they will not be able to obtain cover on your behalf.

****** If you are worried about not having life assurance, then you should explore the NEW HIV Life Assurance products that are coming onto the market. Some people living with HIV still may not be insurable, but many people taking HAART therapy compliantly will be able to have HIV Life Assurance at realistic premiums. *********

This should discourage them from offering insurance, and you’re under no obligation to be more specific than this. The risk in this is that their attitude towards you may change at this point, as they realise their earnings for arranging your mortgage are going to be lower. If this happens then you should find another adviser.

GETTING ADVICE

Find a friendly adviser, who understands the needs of Positive People. It’s best if your adviser arranges the mortgage on a fee basis, as they then will not be reliant on commissions from any insurance products.

Any commission earned from the selected mortgage lender should then be rebated, against your fee. If the adviser has experience of advising HIV positive people, you will feel able to discuss your personal affairs more openly.

Health history, employment changes and your personal outlook for the future, are all highly relevant issues when taking a mortgage. All are key factors in helping you decide on an amount of borrowing and the level of commitment you should make.

The mortgage adviser will help you decide on an affordable mortgage, that suits your needs. They will also advise on savings, for a rainy day. If you’re not able to obtain accident and sickness insurance alongside your mortgage, you should set about insuring yourself.

Positive Finance, the Finance Website and Now Blog for people living with HIV are very proud to have led the campaign for HIV Life Assurance and this article shows some of the repression we were fighting against for HIV Positive people.

 

Most of our suggestions were taken on board by the Life Assurance industry, with our editor Chris Morgan sitting on the industry HIV Working Group that made HIV Life Assurance possible during our campaign.

 

If you require HIV Life Assurance or Mortgage advice please contact our sponsors Compass Mortgage & Insurance Services. They may be contacted by phoning 0845 474 3075 or by email enquiries@compassindependent.co.uk

 

Their website is www.compassindependent.co.uk

 

 

 

HIV LIFE ASSURANCE – THE LATEST

Finding HIV Life Assurance can be a tricky business, so following the recent launch of our new sponsors Unusual Risks we asked them to give us an overview of how the market is shaping up and give us some tips on finding the best HIV Life Assurance.

• Currently only 33.33%* of Insurance providers offer HIV Life Assurance and not even those providers guarantee to cover all of those living with HIV. This is very much a developing market with changes to criteria and insurance products happening each month.

• Unusual Risks recently surveyed the HIV Life Assurance market and found that process can vary enormously for the same cover between providers. They found that in some cases insurance providers charges double the premium for the same client.

• In some cases clients are being asked to submit all of their details on an application and agree to take a medical without any initial terms being quoted by the provider up front. It’s important that you are at least offered an indication of terms before making an application.

• Some HIV Life Assurance providers require that your viral load be non-detectable whilst others require it to be under 100,000. Be aware that those Life Assurance providers offering more relaxed criteria may be asking for higher premiums from the applicant.

• In a developing market such as HIV Life Assurance it is crucial that you seek independent advice from a specialist in life assurance for people with pre-existing medical conditions. They will give greater attention to your circumstances and respect your rights.

If you feel that you are being treated unfairly when applying for HIV Life Assurance, then share your experiences through this blog. We will endeavour to answer your questions and hold product providers to account where they appear to have let standards slip.

If you require more specific advice on these issues, or are looking for quotation then you should contact our sponsors Unusual Risks Mortgage and Insurance Services. They are one of the UK’s leading mortgage and insurance specialists for those with pre-existing medical conditions.

* Source of Figures Is the Unusual Risks HIV Life Assurance Survey 2010, which can be found online at www.unusualrisks.co.uk