If your sex assigned at birth doesn’t align with your gender identity, it could feel upsetting, awkward, or confusing to answer questions about gender on a life insurance application.
Your gender identity typically doesn’t affect your eligibility for life insurance or the amount and type of coverage you need, says Rikin Shah, CEO of GetSure, a life insurance brokerage based in Greenbrae, California.
Insurance companies use a method to evaluate your health and other risk factors. You may feel more at ease when applying for coverage by knowing what to expect and what information you’ll need to provide based on the plan you choose.
Why does sex matter when requesting a life plan?
Businesses evaluate risk and establish prices during the life insurance screening process by taking into account factors like sex, age, and general health.
“The life insurance business operates based on financial knowledge and uses death tables to build rates and premiums,” said Wynne Nowland, CEO of Bradley & Parker, a Melville, New York-based healthcare organization. Nowland’s comments were relayed to NerdWallet by her public relations representative.
Nowland, a trans woman, is aware of the difficulties transgender and nonbinary entrants face when responding to questions about sex. The gender-based model used by the life insurance sector hasn’t matured enough to include transgender and nonbinary individuals as a whole, she claimed.
The good news? Because trans or nonbinary, carriers are legally unable to reject or discriminate against applicants.
When applying for insurance with some carriers, you can choose the identity you identify with. Other businesses base rates on gender assigned at birth or evaluate applications on a case-by-case basis, so be sure to examine the application’s description carefully.
Working with a broker or life insurance broker can help you locate a business that will recognize your female personality.
Gender-affirming care and life coverage
Because insurers look at general health and longevity as part of insurance, you’ll probably have to share the details of any sex-affirming treatment, like testosterone therapy, medications, and surgeries.
Dr. Carl Streed, research director for the GenderCare Center at Boston Medical Center, thinks exploring life insurance provides the transgender community with financial tools that promote long-term security.
Before applying for life plan, Streed suggests having essential information helpful. This might involve the length of your hormone therapy, the medication regimen you’ve followed, and any health problems you’ve treated for.
Gender-affirming operation
If you have any future surgery, whether it be gender-affirming or not, most insurers will prolong your life insurance program. It’s a good idea to wait until after major medical techniques to avoid being denied insurance because insurers aim to reduce risk.
Your application or rates won’t necessarily change because you’ve previously had gender-affirming surgery. However, your insurer will likely examine the specifics of your procedure and treatment to see if there are any hazards or complications that are connected to it.
Hormone replacement therapy
In most cases, hormone replacement therapy may cause further evaluation, Shah says. You’re unlikely to be denied coverage because of hormone therapy only, despite the possibility that you’ll end up paying a higher premium.
Mental health conditions
Because of societal shame, discrimination, and harassment, some trans people are at risk of being diagnosed with a mental health condition, according to the 2018 Michigan Trans Health Survey. More than 72% of transgender and gender-different participants said they had experienced depression in their lifetime, while 73% said they had experienced anxiety.
While having a mental health condition won’t disqualify you from most types of life insurance, it may make the insurer’s underwriting process more thorough, Shah says.
If you have a mental health condition that isn’t well controlled, you could pay higher premiums or be denied coverage. Working with a broker or adviser can guide you through your options.
Types of trans life plan
The amount of information you’ll need to show varies depending on the type of life plan you choose. The main types of term life insurance and whole life insurance have different underwriting degrees, with both types having unique coverage options.
A “fully vetted” policy involves taking a medical examination and filling out a questionnaire. This procedure can provide affordable policy, but usually means sharing sensitive personal information.
If you’d instead keep protection, there are less aggressive underwriting processes for these guidelines:
Group life insurance: Some companies sponsor completely or low-price plans with no medical exam condition.
This whole-life insurance policy, which has limited and expensive insurance, skips the survey and medical exam.
Reduced problem: Available for term or whole insurance, reduced problem life plan involves a quick survey.
Don’t be afraid to apply because of your gender identity, as Nowland said, even though the underwriting process for insurance may feel awkward because of the historically mixed genders.
Dr. Carl Streed, research director for the GenderCare Center at Boston Medical Center, thinks exploring life insurance provides the transgender community with financial tools that promote long-term security.
