How does being transgender pertain to buying a life insurance policy?
When it comes to getting a policy with some life insurance companies, transgender individuals may be classified as male by some carriers and as female by others.
Some life insurance companies, however, are more amenable to working with your definition of yourself as transgender.
Being transgender doesn’t mean you can’t get a life insurance policy. Just like people, life insurance companies have many differences, and life insurance policies are not one-size-fits-all.
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Generally, when someone applies for life insurance, if their assigned sex at birth was female, they should apply as female, and if their assigned sex at birth was male, they should apply as male.
This would include individuals whose gender identity differs from their assigned sex at birth, but who have not undergone any medical or physical transition.
When a person is using (or has used) hormone therapy treatment and/or has had any gender-affirming surgeries, it will not only affect the rates for which they apply, it may also affect the requirements needed during the underwriting process.
Life Insurance Companies Responses Vary to Transgender Applicants
Recently, we worked with an applicant who had surgically transitioned from male to female. We completed an underwriting study—which is when we go to the different life insurance companies and ask what they think they could offer our applicant—and the responses varied.
Some carrier responses included the following:
Please note the statements are the unedited responses of underwriters at some of our life insurance companies and do not reflect the views of Quotacy as a company.
- We may issue Standard male rates assuming no history of depression, anxiety or other issues.
- We may issue Preferred male rates pending on medical history.
- We may issue Preferred female rates pending medical records and that applicant is following post-surgery requirements such as counseling and hormone therapy.
- We cannot issue until 3 years post-surgery and would rate as female then.
- We would generally issue male rates, but will consider female if applicant feels it’s more appropriate.
- Whatever gender the applicant applies as is the one we will use.
- We always underwrite as the gender they were born with.
As you can see, no two life insurance companies are alike.
Each life insurance company follows their own set of underwriting guidelines and works on a case-by-case basis. It is our goal at Quotacy to help you find the life insurance policy that fits you best.
Life insurance companies each follow their own set of guidelines when underwriting transgender individuals. Quotacy helps all clients find the best life insurance policy for their unique needs.
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Life insurance is important for everyone who has loved ones that depend upon them. Quotacy will shop your case with our many life insurance companies to help you get the best policy for your individual situation.
Life insurance offers great peace of mind knowing your loved ones will be protected when you are not around to do so. Take a moment to get free term life insurance quotes and see how little it could cost you to protect the ones you love most.
» Learn more: Life Insurance Options for Transgender People
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About the writer
Natasha Cornelius
Writer, Editor, and Co-Host of Quotacy’s Q&A Friday YouTube Series
Natasha writes and edits content and is co-host of Quotacy’s YouTube series. She is also working toward her Chartered Life Underwriter (CLU) designation. When not working or studying, you’ll find her throwing a tennis ball for her pitbull mix, Emmett, or curled up on her couch watching Netflix. If it’s football season, the Packers game will be on.
I have been with my insurance company for nearly 30 years. I have auto and homeowners policies with them. The denied me life insurance because I have been taking estrogen–as prescribed by a medical professional–to treat gender dysphoria. I do not plan to transition with any sort of GRS. I am quite happy with the effects of the estrogen. My money has been good to them all of these years and now they see me as less than and unworthy? It stinks. I am crazy fit–10-15 miles on the bike daily, followed up by 2-3 miles on the treadmill. I have never smoked and I don’t do illicit drugs of any sort. I pay my bills on time, have a credit score of nearly 800, and I bring home a nice paycheck. Could you please recommend a reputable, LGBTQ-friendly insurance provider for me to gladly take ALL of my insurance needs to?
I am sorry you’ve been having problems with your current insurer. I reached out to our underwriting expert and asked about your situation and he’s surprised you were denied based solely on the estrogen for gender dysphoria. In his experience, most insurance carriers wouldn’t normally have concerns with your case. He suggested that you look at Prudential. Good luck!
Just wanted to make a comment about why you would pay according to the gender you identify as:
When you start hormone therapy your life expectancy and health risks begin to align with the hormone you are taking. If you are a trans man and are taking testosterone your life expectancy will begin to mirror a male’s life expectancy. The inverse is also true if you are a trans woman taking estrogen. In addition, you would have needed to legally change genders and this requires in most states a medical transition. It is not about feelings, it is about measurable risk.
My wife and I are the same age. We have had a term life insurance policy for a couple of decades now. Our policies’ face value is the same. We are both non-smokers, in excellent health. Her monthly premium as a female is 40% less than mine.
According to some of the company responses given above, a biological male (aka, a “man”) can walk into some insurance companies, attest that he is a female (“woman”), and on that criteria alone, some companies will charge HIM the lower premium rate.
If I discover that my life insurance company has this practice, why would I not have grounds for a discrimination lawsuit? And, why would I not be entitled to a refund, with interest, for ALL the increased premium payments I have made over the last two decades?
Trust me: I’m going to check into this. Meanwhile, we all would be well advised to recognize that Insurance companies, like medical professionals, can’t afford to be in the business of treating customers/patients according to their subjective “identity” games.
If you “identify” as a non-smoker and receive a lower premium rate, once your insurer discovers that you are, in fact, a smoker, your policy will likely be cancelled. As it should be.
Hello,
Thank you for your comment. Life insurance is an underwritten contract which means the insurance companies ultimately do discriminate risk and then price according to mortality rates. Short way of saying that men pay more than women, smokers pay more than non-smokers, and people with health challenges tend to pay more than people who are given a clean bill of health by their doctor.
It is important to clarify that the example we referred to in the blog is based on an individual who had surgery to transition from male to female, not someone identifying as a different gender whom has not gone through the gender-affirming surgery. That would be underwritten entirely differently and most insurance companies would underwrite their gender based on their birth certificate.
Gender transitioning is a very complicated process, financially, legally, physically and emotionally, so there are many factors in play when underwriting an individual for life insurance. Many individuals participate in counseling, hormone therapy, and are on a number of prescribed medications, and all of these factors are likely to affect how they are underwritten and therefore affect what premiums they would be required to pay. So while someone who transitioned from male to female may be able to be underwritten as female with some companies, and ergo receive female prices, their premiums likely will be raised based on the other factors. So, insurance companies do balance out the risk they take by insuring transgender applicants.
This amazes me, do these people realise it’s the 21st Century! As a fit & healthy Trans Woman who has yet to undergo GRS (I do gym/PT sessions 4x/week and also do MMA) I am finding it almost impossible to find an accepting Underwriting Co. Wake up folks!!
Hi Paula,
When was the last time you tried applying for life insurance? If it has been awhile I encourage you to try it again. Life insurance carriers will look at your medical history, current medications, family history and a variety of other factors and then underwrite you based on risk alone. You being fit and healthy definitely helps!
We work with multiple life insurance carriers and will do everything we can to help you get coverage if you would like to try again with us this time around. You can start by running a term quote or contact us directly if you have more questions.