Term Life Insurance Blog

HIV positive people have been greatly discriminated against worldwide by insurance agents. Many people living with HIV or AIDS have been unable to get home loans because they could not get life insurance or were offered life insurance at nosebleed prices.

Some companies in South Africa have came up with innovative ways to offer life insurance at an affordable rate, based largely upon the risk factors associated with how well the policy holders adhere to therapy. Moneyweb reports:

A key component of AllLife’s innovative model is the direct offering to consumers. Products include Term life insurance (duration of cover varies, with premiums remaining fixed for the duration of the policy - Level cover for ten years and twenty years is available); Whole Life “standard” life insurance, similar to life insurance policies available to non-HIV+ individuals that provides level cover for as long as premiums are paid, and is available on a fixed monthly premium or increasing monthly premium basis. This product is a pure risk life insurance policy and not a funeral policy; and Home Loan Protection insurance providing cover for the amount outstanding on the individual’s home loan. Central to the calculation of premiums is the prospective policy holder’s health profile and commitment to adherence to appropriate therapy. Cover is extended up to R1 million.

Read more: First ever broad based life insurance for HIV+ individuals to revolutionise industry

Over the last 5 years term life insurance rates have dropped sharply, and they are expected to drop another 3% in 2006. One of the nice things about term life insurance is that it does not cost anything to shop for a new and better contract.

Buying a new policy while rates are low allows you to lock in the same price you are currently paying or pay a cheaper rate for the remainder of your current contract. Those who recently got a policy may not save much by shopping around, but if you bought one before 1999 it may well be worth a look. Keep in mind that rates can vary by vendor and do not drop your old policy until after the new one is active.

The Chicago Tribune reports:

A term policy that in 1994 cost $1,300 will cost just $641 next year, according to AccuQuote.com, an online rate comparison service. The biggest savings will come for people who have term policies started before 1999, when rates were significantly higher. Do the math. If you didn't refinance a 1994 rate and kept paying premiums for another 20 years, you would have wasted $13,180. "It's been a remarkable drop," said Byron Udell, founder and chief executive of AccuQuote. "If you bought your policy before 1999, you should be looking at it."