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Past
My first job in finance was at a small town Lloyds Bank
branch in the 'sticks', doing all the things expected of any office junior—filing,
processing cheques and making the tea. Early on I experienced my first
case of discrimination against gay people. I recall standing at the filing
cabinets, when suddenly the branch financial adviser came bursting through
the door pretending to be sick, and making a hugely childish commotion.
He was midway through a mortgage interview, advising a pair of 'happy'
homosexuals, who "he'd been able to tolerate" until that is,
they had decided to hold hands. I looked on in disbelief, as branch staff
took turns, looking through the security spyglass, trying to catch a glimpse
of the offending couple. This was not the 1960s, it was 1989!
Around the same time the life assurance industry was
amid a sense of panic over HIV and AIDS. The companies were fearful of
losing their profit margins, due to the onset of the virus and a possible
influx of claims. In a knee jerk reaction, they decided to alienate the
perceived 'higher risk' groups. In one swift action, many Gay and Bisexual
men were either denied insurance, had their premium doubled on application,
or asked a series of very personal questions regarding their sexual behaviour.
Many insurers viewed the fact that if someone had been
for a HIV test, they must have had a good reason to do so, and therefore
declined cover. Many gay men were placed on the impaired lives register,
just for admitting their sexuality. The questions asked were deliberately
intrusive, personal and, in the insurers eyes, justified.
Present
Fast forward to 2002!
Many of the practices still in place when applying for
Life Assurance are still based upon the early assumptions of HIV being
a gay disease
A large proportion of insurers still ask a Basic Lifestyle
question.
"Have you ever, or do you belong to one of the
following government recognised high-risk groups for HIV—Bisexual,
Homosexual, Intravenous drug users?"
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 Life Assurance or Critical Illness
Cover relating to a mortgage, many companies also ask if there is anybody
else buying the property with you who are not mentioned on the application.
As soon as you answer "Yes. Fred. Friend"; a lifestyle questionnaire
is generated as two males are buying together.
We seem to have arrived at a middle ground, with some
insurers offering small concessions on lower levels of insurance, for
applications presented by single males.
For Cover Up To £100,000, there are a number of
companies that do not ask any questions relating to sexuality and past
activities.
If an application is for between £100,000 and
£200,000 cover can be obtained by submitting two applications to
different companies, again on a single life basis. Providing the level
of cover is sensible, there should be few problems with the right companies.
Cover can be obtained, without "Basic Questions", "Subsequent
Questions", "Medicals", "HIV testing" and "
Increased Premiums".
At £200,000 and over, things become a little more
tricky.
Again the application should not be made in joint names
if you're a couple. If your application is for above £200,000 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.
You can see that the rules in existence are not ideal,
but are far better than in 1989. Other present day discriminations linked
to gay finances are a direct result of partnership issues and the fact
that Lesbians and Gays are not able to legally marry. Gay men and women
are taxed on transferred assets upon death. This is due to their status
as an unmarried couple and applies no matter how long they've been together.
Pension Rights, are also a grey area with many company pension scheme
trustees, still demanding proof of interdependency before payment of benefits.
Future
It's my view that the current issues surrounding pension
and estate planning will be amended with the passing of partnership rights
for gay and lesbian couples. Many of the large human rights organisations
and pressure groups are devoting energy to this area and I believe this
issue has enough support to be addressed soon.
However, Life Assurance is a different matter. Nothing
is being done at this moment to bring about change within this area.
It's my dream for gay individuals and couples to walk
into my office, request life assurance, be handed the cheapest quote,
an application form, with no reference to sexuality, not be asked for
a HIV test, not be asked about their sexual behaviour and be offered cover
at normal rates.
I would prefer that gay and lesbian people approached
me for advice because of reputation, or simply in order to deal with a
person that understands their needs, not being forced to via discrimination.
I believe the current underwriting of Life Assurance
is a breach of our civil liberty. Our guidelines and procedures are out
of line with parts of Europe and North America. It is time underwriters
considered HIV and AIDS within their 'normal' actuarial figures. Sadly,
the average UK underwriter has little knowledge of the facts surrounding
new HIV infection rates. It's time they did!!
I am forming a pressure group to highlight these issues!
If you also feel strongly about this issue, are an example
of discrimination in this area; have relevant skills within the insurance
industry or legal profession, then I want to hear from you. I would like
to form an organised, focused and technically skilled group to challenge
the Insurance Industry. I will be organising, in the near future, a meeting
of interested parties in Central London for all those involved in this
issue. If you would like to add momentum to this action, then contact
me using the details below.
Write to Chris Morgan, Editor, Pinkfinance.com 2nd Floor,
72 Shaftesbury Avenue, London, W1D 6NA. Email editor@pinkfinance.com
or Phone 020 7287 9008
Chris Morgan is editor of www.pinkfinance.com and qualified
independent financial adviser. He may be contacted via email at editor@pinkfinance.com
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