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.
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.
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" Have had any application which you have withdrawn, been declined or accepted on special terms".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.
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.
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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