If your gender identity does not correspond with the sex assigned at birth, answering questions about gender on a life insurance application can be uncomfortable, confusing, or distressing.
According to Rikin Shah, the CEO of GetSure, a life insurance brokerage in Greenbrae, California, your gender identity typically does not impact your eligibility for life insurance or the type and amount of coverage you require.
Most applications involve underwriting, a process where the insurer evaluates your health and other risk factors. Being aware of what to anticipate and the information you need to provide based on your chosen policy can make the application process more manageable.
Gender plays a significant role in the life insurance application process, as companies consider factors like gender, age, and overall health to assess risk and determine pricing based on actuarial science and mortality tables.
Wynne Nowland, the CEO of Bradley & Parker, an insurance firm in Melville, New York, acknowledges the challenges faced by transgender and nonbinary individuals when responding to gender-related inquiries. While the industry’s gender-based model has deep roots, it has yet to fully include transgender and nonbinary individuals.
Despite this, insurers are prohibited from discriminating against or rejecting applicants based on their transgender or nonbinary status. Some insurers allow applicants to choose the gender they identify with, while others may base rates on assigned sex at birth or evaluate applications on a case-by-case basis.
Disclosing details of gender-affirming care, such as hormone therapy, medications, and surgeries, is crucial during the underwriting process, as insurers assess overall health and longevity.
Dr. Carl Streed, from the GenderCare Center at Boston Medical Center, views exploring life insurance as a means for the transgender community to access financial tools that foster long-term stability.
It is advisable to postpone applying for coverage if you have upcoming surgeries, including gender-affirming procedures, as insurers may delay the process to mitigate risks.
Hormone replacement therapy may lead to a higher premium but is unlikely to result in coverage denial. However, insurers may conduct additional reviews in such cases.
While a history of mental health conditions does not disqualify individuals from most life insurance policies, it may lead to a more thorough underwriting process, potentially affecting premiums or coverage eligibility.
The type of life insurance chosen will determine the level of detail required, with fully underwritten policies involving a questionnaire and offering affordable coverage, albeit with the need to share sensitive information. Alternatively, group life insurance, guaranteed issue policies, and simplified issue policies provide less intrusive underwriting processes.
Regardless of the underwriting level chosen, obtaining life insurance can offer peace of mind for you and your family as you plan for the future.