HIV & your money

Dear Member

An estimated 6 million South Africans are HIV+. Have you ever wondered how HIV affects your money?

When you buy a home or a car, it is advisable to have life cover or to take credit life so that in the event of your death, insurance will pay up your home and house. Life insurance companies deal with HIV in different ways e.g.

  • Some insurance companies require that you test for HIV before they give you life cover. If you are HIV positive then they will NOT cover your life
  • Others will still cover you if you are HIV positive but your premiums would be much higher because of your HIV status
  • Yet others do NOT require you to test for HIV but they rely on the exclusion clause in their contract. So they will ask you to inform them of your HIV status and other health conditions but not ask you test. What this means is that if you die or become disabled or contract a disease as a result of an illness you had before you took out the credit life policy, the policy will NOT pay out. When you claim, they will then check your medical history.

You must therefore check out if your policy has an exclusion for a pre-existing condition. Some policies limit the exclusion to a period of 24 months. That would be a better policy than the one that has no time limit to the exclusion.

No one knows what the future has in store for us. So even if you are HIV negative now, you don’t know if that will always be the case. It is for this reason that whole of life is better than term insurance. Whole of life means you buy the policy for your whole life. Once the life company accepts you as a client, it cannot cancel the policy at a later stage when you get ill.

For more details on all of the above and what to do if your insurance company will not pay; please read Chapter 8: If you cannot afford to lose it insure it from page 110 to 126 of the book From Debt to Riches: Steps to Financial Success by Phumelele Ndumo available where books are sold at R134

Have a happy Christmas and a prosperous 2013 🙂

Apologies for the mistake in the cost of our talk in the newsletter we sent last week. The cost of the talk is only R14 000 as corrected in the advert


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