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There are a number of different types of insurance that
gay men and women can apply for to protect against illness. Some pay a
regular amount should you not be able to do your kind of employment; others
pay out a lump sum on diagnosis of a specific illness.
It's commonly known that Life Assurance is difficult
to obtain for gay men, but not so widely known that sickness cover can
also be difficult to obtain. The application process for Sickness Cover
/ Personal Income Protection (PIP) and Critical Illness (CI) cover can
be discriminatory if the wrong insurer is approached. Pink Finance; brings
you the complete guide to applying for each.
General
On both types of application you may be asked about
your sexuality. A "Basic Lifestyle Question" would look like
this: -
"Do you belong to one of the following government
recognised groups for HIV. Bisexual, Homosexual or are you an Intravenous
Drug User."
Should you answer yes, homosexual, a high proportion
of insurers will then ask a "Subsequent Lifestyle Questionnaire".
These relate to sexual activity, relationships and any past sexually transmitted
diseases you may have contracted.
Some insurers may ask for a medical and even a HIV test,
before accepting your application. This may or may not be at their standard
premium rates. It's not unusual for gay men to have their premium rates
doubled.
Some life companies still place, gay men on the impaired
life register, if answering yes to these questions. This could affect
your ability to obtain insurance in the future. 
There are a number of gay finance firms who specialise
in placing insurance for gay men, and you should seek advice before submitting
an application.
Personal Income Protection
Even though PIP policies do not cover HIV and related
illnesses, many companies still ask all the personal questions mentioned
above. Yes, you read correctly, they ask all of the questions that guard
against insuring the perceived higher risk from HIV, yet they do not even
pay out in the event.
There are however, a few insurers that have recognised
this, and have seen sense by relaxing their underwriting procedure. They
do not ask about sexuality, activities or indeed past STD's. You should
approach a gay finance firm to identify the most appropriate provider
to your individual circumstances.
Before doing so, you should not withdraw any existing
application.
You will be asked on any further applications you make....
" Have had any application which you have withdrawn,
been declined or accepted on special terms".
If you do not withdraw an application, then you will
still be in a position to answer no to this question.
CI
Lump sum Critical Illness Cover is underwritten in a
similar way to Life Assurance. A large proportion of insurers again ask
the Basic Lifestyle question.
"Do you belong to one of the following government
recognised groups for HIV. Bisexual, Homosexual or are you an Intravenous
Drug User."
If you answer yes, you will be asked a "subsequent
lifestyle questionnaire" which will look like this....
"How many partners have you had in the last 5-10
years?"
"How long have you been with your present partner?"
"Has this been a monogamous relationship?"
"Have you been treated for any STDs within the
past 3 years?"
On applications for Critical Illness relating to a mortgage,
many companies also ask if there is anybody else buying the property with
you that are not mentioned on the application. As soon as you answer YES,
Fred a 'friend'. A lifestyle questionnaire is generated, as two males
are buying together. This question also needs to be avoided.
Solutions
Up to £100,000
For applications up to £100,000, there are a number
of Life Assurance companies that do not ask any questions relating to
sexuality and past activities. The application should not be made in joint
names. This applies to all, Life, Sickness and Critical Illness proposals
made by gay couples.
Between £100,000 and £200,000
The answer lies in submitting two applications to different
companies, on a single life basis. Providing the level of cover is sensible
and the applications are presented correctly, there should be few problems.
Cover can be obtained, without "Basic Questions", "Subsequent
Questions", "Medicals", "HIV testing" and "
Increased Premiums".
Over £200,000
Again the application should not be made in joint names
if you're a couple. If your application is for above £100,000 all
companies will ask the "Basic Lifestyle Question", and ask for
a HIV test. By approaching a gay insurance specialist, you will be able
to obtain cover without the "Subsequent Lifestyle Questions"
and your premiums being doubled.
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