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How to Pay for HIV/AIDS Costs Using Life Insurance Policies

Two Methods:Terminal Illness RiderCash Value InsuranceCommunity Q&A

Treatment for HIV/AIDS, like many other long-term illnesses, can mean devastating medical bills on top of the emotional distress of suffering from the disease. Even with health insurance, the rising bills can quickly exceed your maximum lifetime coverage and leave you with the remainder. It's possible to pay for your HIV/AIDS costs using life insurance policies, but not always. Your policy must have one or both of two key features in order to be a useful tool for this purpose.

Method 1
Terminal Illness Rider

  1. 1
    Confirm that your life insurance policy has a terminal illness rider. A terminal illness rider allows you to access some or all of your death benefits if you are diagnosed with an illness that is likely to become fatal.
    • In some states, insurance law requires all policies to carry a terminal illness rider by default.
    • Due to modern advances in treatment for HIV/AIDS, this disease is no longer guaranteed to be fatal. You may or may not qualify for this rider as a way to pay for HIV/AIDS costs.
  2. 2
    Compare the policies of your rider against your current medical diagnosis to confirm that you qualify to use the terminal illness rider.
  3. 3
    Contact your insurance agent or customer service representative. Go through the process of activating your terminal illness rider.
    • Be prepared to sign and send in documents. You can do this in person with your agent, or remotely using mail or fax.
    • You should receive your payment as soon as it's processed. In general, you can expect the funds to arrive in the same way you pay your premiums. If you send a check, you'll get one in the mail. If you pay by automatic draft, watch the account from which you pay your premiums.

Method 2
Cash Value Insurance

  1. 1
    Confirm that your insurance policy has a cash value. These policies accumulate money in an account as they mature; it is money you can access when you have an emergency need.
    • Whole life, universal life and variable life policies typically have a cash value. Term life insurance policies do not.
  2. 2
    Consult your policy paperwork to determine the estimated current cash value. If you've ever taken out a policy loan, or if you have a variable or universal life policy, you should confirm this total by calling a customer service representative or your personal agent.
  3. 3
    Explain your situation and request a disbursement of the cash value for your life insurance policy.
  4. 4
    Check the fees and interest associated with accessing your cash value account against interest and fees for other financing options. Often, the costs associated with borrowing against your life insurance policy are more expensive than credit cards.
  5. 5
    Complete the process for accessing the money, provided the conditions meet your needs. As with the terminal illness rider, you can expect to complete some paperwork during this step.
    • You don't have to pay back the money you borrow against your life insurance. If you die without having paid it back, the loan and interest are simply deducted from the death benefit before it's paid out.

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Categories: Life Insurance | Autoimmune Diseases

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