Gay Life Assurance, Gay Life Insurance and Gay Mortgage Blog

Finding Gay Life Assurance, Critical Illness Cover and Income Protection can be a tricky business, so following our series of ‘classic’ Pink Finance articles here’s an up to date guide to buying Gay Insurance products in the United Kingdom.

• It is now outside of the Life Assurance Industries best practice guidelines to discriminate against the gay community when applying for Life Assurance. This means that gay men and women should not be asked directly about their sexuality when applying for Life Assurance products.

• Insurance companies will ask you about sexual behaviour and any exposure to HIV, but this is now a common question across all risk groups. Insurance companies would expect you to disclose if you had practiced unsafe sexual behaviour.

• If you have a history of sexually transmitted infections on your medical records, then you may be asked to take a HIV test. General Practitioners are required to inform Life Assurance companies of any factors that may have long term health implications.

• There is now a HIV testing limit of £1,000,000, which has been adopted by all Life Assurance companies for both single males and those in a civil partnership. This means if you are asked for a HIV test, then you should seek advice before proceeding with the application.

• The average amount of Life Assurance held by gay individuals was last year reported to be £179,684* and gay individuals £198,939*. It would need a sum assured of £684,000 to meet the average gay income of £34,200* in the event of a person’s death.

If you feel that you are being treated unfairly when applying for Gay Life Assurance, Critical Illness Cover, Income Protection, or Private Medical Insurance you can share your experiences through this blog and we will endeavour to answer your questions.

If you require more specific advice on these issues, or are looking for quotation then you should contact our sponsors Compass Mortgage and Insurance Services. They are the UK’s leading mortgage and insurance specialists for the gay and HIV communities. * Source of Figures Is the Compass Gay Life Assurance report 2009, which can be found online at www.compassindependent.co.uk

First Published August 2006 … Edited May 2010

Are you promiscuous? This month Chris speaks to a client who is concerned about his sexual history affecting his Life Assurance premiums.

Billy is worried about the contents of his medical records and what his doctor may say to his Life Assurance Company. He wants to apply for Life Assurance and Critical Illness Cover for his mortgage of £250,000 over the next 25 years.

Billy said…

‘I’ve had a number of men in my life and consequently have had to seek treatment for STD’s on a few occasions. I’m a little concerned about the Life Assurance Company calling for my medical records, as I’ve always used my local doctor’.

Billy is right to be concerned, as disclosure of multiple cases of STD’s is deemed relevant for Life Assurance Underwriting. Doctors are obliged to highlight any facts that are deemed to have ‘long term’ health implications.

An isolated case of an STD would not be a major concern to a Life Assurance company, but if there is a track record, they are likely to ask for an HIV test. They would also be likely to ask further questions about your past sexual behaviour.

Billy said …

‘They were all fairly minor incidents that were cleared up quite easily and I’ve always practiced safe sex since. If I had known that this information could be used by Life Assurance Companies, I’d have gone to a separate walk in clinic.’

Here’s a guide to Life Assurance and Sexual Behaviour

Your doctor will not be ‘asked’ directly about your sexuality and they are not allowed to ‘answer’ any direct ‘Gay Questions’. But, they are required to share information on your records which has long term health implications.

Since new rules in September 2005, you will not be asked the ‘Gay Question’ on Life Assurance applications. However, you will probably be asked if you have been exposed to the risk of HIV infection through unprotected sex.

There is now an additional ‘Sexual Behaviour’ box on every Life Assurance application, which you can choose to provide further information. ‘Have you anything to add to your answers which in your view means you are, or are not, at risk of HIV?

And Billy?

Even though Billy has a bit of reputation, we arranged Life Assurance and Critical Illness Cover for him at £300,000. This was without answering any additional questions about his Sexual Behaviour or taking an intrusive HIV test.

Editors Notes …. May 2010

All Life Assurance providers now ask ‘single males’ for a HIV test only when applying for Life Assurance Income Protection and Critical Illness cover for amounts of over £1,000,000. Pink Finance is extremely proud to have paved the way for the LGBT community to be treated equally by the insurance industry.

Chris Morgan is the Marketing Manager of Compass www.compassindependent.co.uk , The Gay Mortgage and Insurance Advisers and editor of Pink Finance www.pinkfinance.co.uk The Gay Finance Magazine. He was a consultant to the Association of British Insurers on Gay and HIV and Insurance issues between 2003 and 2008.

First Published August 2006 … Edited May 2010.

Are you facing questions about your same sex partnership? Chris advises one client being asked about his relationship on a Life Assurance application.

John is concerned about disclosing his Civil Partnership status to a Life Assurance company as he would effectively be ‘outing’ himself. He’s applying for £450,000 of Life Assurance and Critical Illness Cover to the age of 65.

John Said…

‘I’m worried about answering personal questions about my relationship and then being asked to take a HIV test by an insurance company. By ticking their Civil Partnership box, I’d be confirming my sexuality on the application form’.

This is an area that I’ve been helping to address with the Association of British Insurers. I’m pleased to announce that the ‘Married/Civil Partnership’ question is to share the same tick-box on application forms—so sexuality cannot be identified.

In line with the HIV and Insurance Guidelines (September 2005), applicants will not be asked directly about their sexuality in any way. The ‘Gay Question’ has been removed from all Life Assurance, Critical Illness and Income Protection applications.

John Continued…

‘We registered our relationship only a couple of months ago, so these types of issues are all very new to us. I want to make sure that my partner is protected properly and my mortgage is paid off in the event of death or serious illness.’

Here’s a guide to answering Life Assurance Questions

Any confirmation of your Civil Partnership should be in the same box as the marriage question. This way you will not be disclosing your sexuality. Obviously if you make a joint application for Life Assurance then the company is going to be aware of sexuality.

(Since this was written the Equality Act has reinforced these guidelines. See below for more details).

You may consider holding separate Life Assurance policies, if you are particularly concerned about submitting a joint application. This can also be a useful way of providing double insurance, providing the costs are reasonable.

There is no direct ‘Gay Question’ on Life Assurance applications any more, but you will be asked about your sexual behaviour. ‘You will be asked ‘Have you been exposed to the risk of HIV infection? HIV can be caught through unsafe sex, intravenous drug abuse, blood transfusions’.

And John?

In this case our sponsors arranged Life Assurance and Critical Illness Cover for £450,000 to cover John’s debts and outstanding Mortgage. He disclosed his partnered/married status without directly disclosing his sexuality, and was not required to take an HIV test.

Editors Notes …. May 2010

All Life Assurance providers now ask ‘single males’ for a HIV test only when applying for Life Assurance Income Protection and Critical Illness cover for amounts of over £1,000,000. Pink Finance is extremely proud to have paved the way for the LGBT community to be treated equally by the insurance industry.

Chris Morgan is the Marketing Manager of Compass www.compassindependent.co.uk , The Gay Mortgage and Insurance Advisers and editor of Pink Finance www.pinkfinance.co.uk The Gay Finance Magazine. He was a consultant to the Association of British Insurers on Gay and HIV and Insurance issues between 2003 and 2008.

First Published October 2005 … Edited May 2010.

On the 30th September 2005, we will finally have the opportunity to insure our lives, partners and income without fear of discrimination. This will be the end of a personal journey that started back in March 1999, with a promise to remove the ‘gay question’ from all Life Assurance application forms.

With the introduction of the new Association of British Insurers guidelines relating to HIV and Insurance, the job will be complete. Intrusive questions for gay men will be removed from all Life Assurance, Income Protection and Critical Illness Cover applications.

Life Assurance companies are already preparing new application forms, which will have no specific method to identify gay men. There is going to be a new common method for assessing HIV risk, and a new question relevant to all risk groups.

Finally the insurance industry will be recognising that HIV is a global issue, which affects people from all walks of life and not just the gay community. This is the new question that will be asked of all those applying for Life Assurance, Income Protection and Critical Illness Cover, regardless of sexuality.

“Within the last five years have you been exposed to HIV infection?” (This can be caught through unsafe sex, intravenous drug use, or blood transfusions or surgery undertaken outside the EU)

A number of insurance industry publications have already criticised the new questioning and procedures on the grounds that they are more intrusive towards heterosexual clients. They seem to forget that the gay community has suffered far more intrusive questioning than this for over a decade.

In the past we may have avoided our responsibilities, or may have been reluctant to answer intrusive questions and take compulsory HIV tests. As a consequence there will many of us that will be under insured in respect of our incomes, mortgages, partners and business’s.

Here’s a guide to the new insurance underwriting rules and the many new opportunities that now exist for gay financial planning. Along with the new insurance application forms, there are going to be changes to the limits at which Life Assurance companies ask all people for an HIV test.

Individuals

Many gay people in the past have avoided insuring their life, mortgage or income through fear of discrimination. From now on you will be able to apply for all these types of cover without being asked about your sexuality, and without compulsory HIV testing.

You will be able to apply for higher amounts of Life Assurance, Income Protection and Critical Illness Cover without being asked to take a HIV test. With many insurance companies increasing their single male HIV testing limit from £100,000 to an amount between £300,000 and £600,000. (This has now subsequently been moved to £1,000,000 by all Life Assurance Companies)

This means you will be able to apply for Life Assurance, Critical Illness or Income Protection below these limits without taking an HIV test. You will still be required to take an HIV test for higher amounts of insurance, but this will be the same with all other groups.

Partners

A large number of gay couples have needed extra cover above their mortgage needs, but were reluctant to apply for fear of discrimination. You will now be able to apply for higher amounts of cover, without the requirement to take an HIV test, or answer any intrusive questions.

For the first time you will be able to submit a joint application, without Life Assurance companies asking intimate questions about your relationship. There is now no way of confirming that you are gay, and therefore you will be treated equally along with applications from Heterosexual couples.

Once again you will be able to apply for cover between £300,000 and £600,000, depending on the individual company to whom you apply. Some companies have promised not to ask for an HIV test for cover up to £1,000,000 for those couples who have signed the civil partnership register.

Businesses

Many Gay businesses may have been reluctant to take insurance cover in the past due to directors and partners being asked personal questions and HIV testing. This was especially the case if the business was widely known to be operating within the gay community.

Companies that may have avoided taking important business insurance in the past now have the opportunity to take higher amounts of cover. If you’re a company director, or in a partnership, you will now be able to apply for higher amounts of cover without declaring your sexuality.

For the first time Gay businesses will have the opportunity to take insurance protection for their management and their key employees without fear of discrimination. They will be able to make sure that provisions are in place to safeguard future ownership of the business and profitability.

Product Providers

In the finance industry’s own terms we are probably the most ‘underinsured’, or ‘undersold’ group of people in relation to financial services. Over the coming months we’re likely to see a large increase in the number of companies who are interested in insuring our lives and investing our money.

Many product providers are now starting to embrace the gay community, with new products that are considerate to our needs. One Life Assurance company is now even offering special treatment and terms for those signing the Civil Partnership register.

There are also companies seizing the moment and starting to market their brand within the gay press and media. With the barriers being removed, product providers are finally seeing gay customers as being desirable.

Whole Market

From October 2005 we will be able to choose our financial products from the full range of providers available. We are now able to look at the ‘whole of the market’ and make our selections based upon competitive pricing, the quality of cover and service standards.

We’ve never had such opportunity to look after our financial future and choose the best products for our needs. It’s time for the gay community to break free from repression by protecting our homes, incomes and partners – to save and invest for our futures.

Editors Notes …. May 2010

All Life Assurance providers now ask ‘single males’ for a HIV test only when applying for Life Assurance Income Protection and Critical Illness cover for amounts of over £1,000,000. Pink Finance is extremely proud to have paved the way for the LGBT community to be treated equally by the insurance industry.

Chris Morgan is the Marketing Manager of Compass www.compassindependent.co.uk , The Gay Mortgage and Insurance Advisers and editor of Pink Finance www.pinkfinance.co.uk The Gay Finance Magazine. He was a consultant to the Association of British Insurers on Gay and HIV and Insurance issues between 2003 and 2008.