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Rate fears over cover for HIV clients

IFA Totally Insured Group is offering the industry’s first life insurance contract for HIV-positive clients but an IFA is warning that it could cost up to 30 times the market rate.

TIG is launching Positively Insured, which offers 10,000 life cover for people diagnosed with HIV for at least 12 months on December 1 – which is World Aids Day.

The policy is offered with an optional accidental death ins- urance option.

A 39-year-old man – smoker or non-smoker – would pay 5 a month for 10,000 life cover but the accidental death rates range from 25 a month for 40,000 accidental death cover to 100 for 200,000 cover.

Compass IFA director Chris Morgan believes that this is up to 30 times higher than market rates and is unaccept- ably expensive.

Morgan says: “This could cause a lot of confusion in the market. People will think that they are buying 50,000 of cover when they are only getting 10,000 of cover.

“I think that this is out- rageously overpriced and is not in keeping with treating people fairly.”

TIG managing director Ron Moonsinghe admits that the accidental death side of the product is expensive but the life cover is fair.

Moonsinghe says: “Just bec-ause you are HIV-positive, it does not mean that you cannot die in a car crash. People with pre-existing cond- itions have as much right as anyone to protect their dep-endants from financial hardship when they die.”

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