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Transgender life insurance
Finding life insurance as a transgender person is complicated, but the good news is that more and more insurance companies are updating their policies and transgender life insurance is now an issue. If it suits you, get your free copy 5 building blocks for a happy gay life Here.
Can I get transgender life insurance?
Yes, but there are some things you need to keep in mind when applying. For this article we turned to Jennifer Fitzgerald, CEO of Policygeniusto find out if underwriting requirements are different for transgender applicants, and here’s what she had to say:
“When applying for life insurance, there are no mandated different insurance requirements for transgender applicants. Each applicant can count on the standard protocols of the institution to which they are applying, such as: B. Medical history, age, etc.
There are some unique aspects of the application process that transgender people may consider. For example, while most insurance carriers will underwrite an applicant’s insurance based on their current gender identity, some insurance carriers may determine coverage based on the gender assigned at birth. This decision-making varies by provider, so it can be very helpful to seek out an independent broker who can help you understand all your options.”
Things are getting better for all LGBTQ people. Not only can you get transgender life insurance, but some insurance carriers may benefit you more as a transgender person depending on your coverage goals.
Let’s look at which carriers are the most transgender-friendly and give you an idea of how insurance carriers view and purchase life insurance coverage for transgender people.
The challenges of purchasing life insurance as a transgender person
However, if you purchase life insurance as a transgender person, some gender discrimination may occur, especially if you live in a state that does not prohibit discrimination in services for transgender people.
For example, some states have laws that require you to go to a judge to change your gender identity. To legally change your gender, you may first have to undergo an expensive gender reassignment procedure. One state that had such a law was Colorado. In 2019, Colorado Governor Jared Polis created Judas Law. This law made it easier for transgender people to change their gender identity on their birth certificates and driver’s licenses.
In addition, some insurance companies do not cover this operation; Therefore, you may have to travel to another state, which can be quite expensive.
According to HealthCare.gov, “Many health insurance companies still use exclusions such as “gender reassignment services” or “gender reassignment surgery” to deny transgender people coverage for certain health care services. Coverage varies by state.”
Traditional differences between men and women with life insurance
In the United States, life insurance rates are generally cheaper for women than for men. This is because insurance premiums are influenced by life expectancy. On average, women are expected to live longer than men.
However, you must decide what is most important to you. Is it more important to you to get the lowest possible insurance rate, or does insurance coverage depend on your gender identity?
Best age to purchase life insurance
While the best age to purchase life insurance depends on your individual financial circumstances, it is usually best to purchase insurance as early as possible. Why? As you get older, purchasing life insurance becomes more expensive.
For example, according to a ValuePenguin article, the average cost of life insurance for a 25-year-old non-smoker in 2020 is $25.67 per month. For a 40-year-old non-smoker, the cost is $38.14 per month. That’s a difference of $149.28 per year.
The difference becomes even more noticeable once you turn 50 – the average monthly cost is a whopping $91.53 per month.
What type of life insurance is best for transgender people?
There are two types of life insurance: term life insurance and whole life insurance. Term life insurance lasts for a specific period of time. The whole life will last your whole life.
What type of life insurance is best for you?
This depends on your individual circumstances. Most people recommend term life insurance because it is cheaper. The money you save by purchasing term life insurance versus term life insurance can be used to invest the difference and build wealth faster.
But what happens if you buy term life insurance and it expires right before something bad happens? Will you be disciplined enough to save and invest the right amount of money to ensure a comfortable life for your loved ones in the event of your passing?
If you’re unsure, term life insurance may be right for you. In addition to the lifetime term, the insurance also has a cash value component: a portion of your premiums is put aside.
Do these benefits sound good to you? What’s the disadvantage? The biggest downside is that this permanent life insurance can cost you 15 times more than term life insurance Political genius.
Still, term life insurance is the best choice for 90% of those who want life insurance. This is due to the amount of insurance coverage you can purchase with low premiums. I recently asked over 40 experts which coverage is the best. Term versus life insurance. An overwhelming majority of respondents chose term life insurance.
When you start looking Life insurance offersMost of the rates you see online are for term life insurance. For this article, my research and outreach focused on term life insurance.
Will insurance carriers recognize me as a transgender person?
There is no one-size-fits-all answer to how insurance carriers insure you. Every insurance company has different underwriting guidelines. Some are more accessible to the transgender community than others.
Some airlines follow government guidelines specific to where you live. An insurance agent can obtain the details for you from each insurance carrier.
John Hancock Underwriting Guide for Transgender People
John Hancock writes life insurance based on sex at birth unless reassignment surgery has been completed.
Prudential Life Insurance Underwriting Guide for Transgender People
Prudential Life Insurance underwrites life insurance based on gender identity. However, if you are a trans man with breast cancer, your policy will be covered based on your gender at birth.
We partnered with Prudential to spread the message of financial wellness in the queer community. Here are three tips for achieving financial wellness as an LGBTQ person.
Debt Free Guys & Prudential on Financial Wellbeing in the Queer Community:
MassMutual/Haven Life Underwriting Guide for Transgender People
MassMutual/Haven Life takes care of your life insurance based on gender identity.
Principal Life Insurance Guide for Transgender People
Like MassMutual/Haven Life, Principal Life underwrites your life insurance based on gender identity
TransAmerica Underwriting Guide for Transgender People
TransAmerica is similar to John Hancock in that your policy will be written based on sex at birth unless you have undergone gender reassignment surgery.
Standard Life Insurance Guide for Transgender People
Standard Life will underwrite your life insurance based on your gender identity if you have received medical treatment to support your gender transition
Can I get life insurance if I have had gender reassignment surgery?
Yes, two of the life insurance companies we contacted, John Hancock and TransAmerica, actually require you to have gender reassignment surgery, otherwise your policy will be written based on your gender at birth.
As long as you don’t have breast cancer, Prudential also allows you to get life insurance if you’ve had gender reassignment surgery.
If you’re thinking about having reassignment surgery, you’re least likely to run into problems in states that ban discrimination against transgender people.
According to the Human Rights Campaign’s (HRC) 2019 State Equality Index report, here are the states that ban insurance exclusions for transgender health care and/or “provide inclusive health benefits for state employees”:
- Washington
- Oregon
- California
- Nevada
- Montana
- Colorado
- New Mexico
- Minnesota
- Michigan
- Illinois
- Hawaii
- new York
- Pennsylvania
- Vermont
- Maryland
- New Jersey
- Delaware
- Maine
- New Hampshire
- Connecticut
- Wisconsin
When applying for life insurance after relocation surgery, other factors you should consider include:
- How far along are you in the transition phase?
- Are you taking medication therapies to ease your transition? Do these medications have side effects?
- Have your surgical procedures and/or drug therapies resulted in health problems that are likely to continue?
Insurance companies that cover gender reassignment surgery
Here are some insurance companies that cover gender reassignment surgery:
- Etna
- United Healthcare
- BlueCross BlueShield
- Cigna
Additionally, according to HRC, “many large private employers have taken steps to actively remove transgender health care exclusions from their employer-provided plans.” They also recommend that you look into Medicare/Medicaid programs if you participate in them .
What name should transgender people use when applying for life insurance?
You should definitely check with each individual provider you plan to apply to, but there are two things you should keep in mind:
- Have you legally changed your name in your state?
- Do you have documentation showing that your name has changed?
Because many traditional insurance carriers require you to answer questions to an agent in person, fill out paperwork, complete a medical exam, and wait for results, you will likely be asked to provide documentation showing your legal name.
What if you haven’t changed your legal name yet? How much will it cost?
The costs for a legal name change vary depending on where you live. Therefore, you will need to contact your local court clerk to find out how much it costs.
According to Total Legal, the name change fee can be as low as $10 in some Alabama counties and as high as $500 in some Louisiana parishes.
Are there any carriers friendlier than others for transgender life insurance?
Yes, some providers are definitely friendlier than others when it comes to transgender life insurance. Port lifePrincipal and Prudential are the more trans-friendly insurance carriers and recognize your gender identity. To be clear, all of the carriers on this list are trans-friendly. It’s just that these three have better transgender life insurance.
While these three providers will underwrite your life insurance based on your gender identity, some will only underwrite your policy based on sex at birth.
Additionally, some insurance companies like John Hancock require you to have gender reassignment surgery, which can be quite expensive. For example, when we asked Andi Tremonte about the high cost of being transgender, we learned that female-to-male sex reassignment surgery can cost about $30,000.
Whether you choose to have surgery is a personal decision, but as Andi said in our interview: Don’t feel pressured to have surgery just because you identify as trans. It is not a requirement.
The high cost of being transgender
In this episode of Queer money® we talk to Andi Tremonte about transgender people and the high cost of female-to-male transgender surgery.
Trans activist Andi Tremonte on Queer Money®:
What mistakes should you avoid when purchasing life insurance?
When taking out life insurance, you should avoid the following mistakes:
- You are not purchasing the right amount of coverage for your needs
- Buying the wrong type of policy
- You don’t research all your life insurance options
- Selecting the wrong beneficiary
Do I need a health exam to get life insurance?
Unfortunately, many life insurance carriers require a medical exam before completing the underwriting process. This can be as involved as having to go to your doctor’s office for a full exam and blood work, to having an affiliated health professional representing the insurer meet you at home or at work for a basic exam and blood work . There is no cost to you for this service.
John did this when he applied Insurance through Haven Lifewhich, as mentioned above, is one of the more progressive insurance carriers for transgender people.
There are some providers who do not require a medical examination when submitting an application. Typically, you will find that these providers’ insurance coverage has shorter terms than most providers, many of which are in the 2 to 10 year range. Additionally, the insurance is typically term life insurance, which may be a good fit for you and your loved ones because it typically costs less.
How do I prepare for a life insurance medical exam?
If you decide to purchase life insurance with a medical exam, here are some tips to help you prepare:
- Get a good night’s sleep the day before
- Drink plenty of water
- Don’t drink alcohol
- Don’t smoke
- Eat a healthy diet (most research says you should avoid salty foods)
Do I have to work with an insurance agent to get coverage?
No, but you probably should.
There are newer providers like Ladder Life and Port lifethat offer life insurance without the need for a broker. However, depending on your situation, it may be best to contact an insurance agent.
Trust me, I understand. It’s not always easy to talk about your own situation.
If you’re part of the LGBTQ community like me, you probably assume that your spouse is female if you’re male, and vice versa. I’m always in correction mode. The difference with purchasing transgender life insurance is that licensed agents like me are bound by the Health Insurance Portability and Accountability Act (HIPAA) guidelines and privacy laws. Insurance carriers also commit us to doing our best for every customer.
The best way to speak to an insurance agent is to be honest and open and not hold anything back. The agent is like your doctor or lawyer; They won’t judge you or make you uncomfortable.
They just want to provide you with the best insurance coverage for you and your family. GLADD has an excellent resource to educate people about the transgender community. Email this guide to your agent if you think it will help understand you better.
If you contact your insurance agent directly, they can match you with the provider that best suits you and your family’s needs.
Additionally, a broker can help you determine the coverage you need and answer any questions you may have about the different types of life insurance.
How can I get transgender life insurance?
If you want to get transgender life insurance today, here are some steps you should take:
- Determine the amount of coverage you need
- Research carrier
- Consult a professional
1. Determine the amount of coverage required
According to Investopedia, most insurance companies recommend carrying six to ten times your annual salary in life insurance. So if your annual salary is $40,000, you’ll want to purchase a policy with a value between $240,000 and $400,000.
2. Research carrier
After reading this article, I recommend you do your due diligence. If you can’t find an insurance carrier you like, take Jennifer Fitzgerald’s advice and shop around.
3. Consult a professional
Finally, consult an insurance professional if necessary. We can highly recommend it Port life And Political genius.
John used Haven Life for his life insurance because it gave him immediate coverage. Additionally, Haven Life is supported and wholly owned by MassMutual. MassMutual was a frequent sponsor of the Queer money® Podcast.
To learn more about how Haven Life can help you, Click on this link here.
We spoke to Mark Sayre, Underwriting Product Manager for Haven Life and member of the queer community, about why all queer people need life insurance.
This is why all queer people need life insurance:
With Policygenius there are no hidden fees, you just need to fill out an application and best of all, the advice is unbiased.
To learn more about how Policygenius can help you, Click on this link here.
What are the consequences of taking out life insurance?
Being non-binary doesn’t stop you from getting life insurance, but for now you must apply as either a man or a woman. According to Investopedia, “The underwriting process has not changed, despite widespread recognition that many people do not see themselves in binary gender definitions.”
How transgender people can overcome systemic money problems
In this episode the Queer money® Podcast we talk to Brynne Conroy about her book, The Feminist Woman’s Handbook: A Modern Woman’s Guide to a Prosperous Life. Nicole, a transgender veteran, shares her story about what life is like for a transgender person.
Listen to trans activist Nicole Lynn Perry Queer money®:
More tools to help transgender people with their lives, health and prosperity:
This was originally a guest post by Sa El, co-founder and CEO of Simply insurance. Sa is a licensed life and health insurance broker with over nine years of experience in the industry.
This has since been edited and updated by Jerry Brown, the mastermind behind the blog Unparalleled Money Mentor. When he’s not reading thought-provoking books or studying finance, he’s spending time with family, riding his bike, or going on a random adventure somewhere.