But all is not lost, a few guaranteed issue providers and quite a few simplified life insurers will sell some kind of life insurance.
The benefits of guaranteed issue policies is there is no health questions and no medical assessment to take. As a result you don't have to declare you have AIDS or HIV There are three caveats with guaranteed issue policies:
1) Big contributions are the first issue to this type of policy.
2) The money paid out on death is significantly lower than other plans.
3) coverage has a two-year deferment period of time. The waiting term means that if the insured was to die of a non-accidental death within this waiting period, then the benefactor would be lucky to receive the premiums paid plus interest or even just the premiums!
With no medical test but up to 12 medical questions, then a simplified issue life insurance policy may be the insurance for you. With higher face amounts and smaller payments this type of policy is better from the monetary side. Some simplified schemes pay out immediately and others have a two year waiting period. Canada Protection Plan and Assumption Life are two of the main issuers of this type of life insurance around Canada. With regard to questions about HIV or AIDS then the differed term policy and the deferred life policy from Canada Protection Plan are the most user friendly.
They are put as follows: Deferred Life within the past three years, has the insured been treated for unusual chronic infection, including HIV and AIDS. Whilst the Canada Protection Policy for deferred term asks within the past three years, has the insured been diagnosed with or started treatment for unusual chronic infection or immune system abnormality, including HIV or AIDS? - this policy is even better for the potential purchaser and has $100,000 of coverage.
Author is life insurance Canada expert