According to a recent Gallup poll, a record number 18 million adults identify as LGBTQ. Among adult LGBTQ individuals, 11.3% identify as transgender.
While society is becoming more accepting, transgender adults are still often faced with confusing or contradictory guidelines when it comes to their legal rights and options. Some states provide transgender people with the same rights as cisgender people (those who identify as the gender listed on their birth certificate) and others do not.
For life insurance, you may be wondering what kind of challenges transgender individuals may face. Well, being transgender will not necessarily cause you to receive more expensive life insurance quotes.
Just like cisgender people, your age, past and current health (both physical and mental), along with your lifestyle and employment history, will impact your term life insurance rates. You may be considered to be within the Preferred (or low risk) class of applicants if you are a healthy, non-smoking, transgender person. Let’s dig into the process of buying life insurance as a transgender individual a bit more.
How does being transgender affect buying a life insurance 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.
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.
If you have transitioned or are in the midst of, the following factors will be evaluated by the insurance company:
- The stage of your transition
- Whether or not any drug therapies used—or that you will continue to use—are experimental (and therefore may have unforeseen side effects)
- If your surgery and/or drug therapies resulted in health issues that are likely to continue
These factors along with the typical age, occupation, and hobby factors are considered when determining the risk class given to an individual. The medical records of a transgender individual will be ordered and reviewed.
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Laws that Protect Transgender Life Insurance Rights
Many states have taken huge strides towards clarifying the legal standing of LGBT people in their states. That means that the life insurance industry—which has often led the way in inclusive policies—is now navigating a range of regulations and standards designed to make finding term life insurance as a transgender person easier.
For example, some states have codified more inclusive definitions of gender:
In California:
“Gender” means sex, and includes a person’s gender identity and gender related appearance and behavior whether or not stereotypically associated with the person’s assigned sex at birth.” California DOI 2007-02
“Existing law authorizes a person who was born in this state and who has undergone clinically appropriate treatment for the purpose of gender transition to obtain a new birth certificate from the State Registrar.”
Senate Bill No. 179 Chapter 853
And in Delaware:
“Gender identity” means a gender-related identity, appearance, expression or behavior of a person, regardless of the person’s assigned sex at birth. Gender identity may be demonstrated by consistent and uniform assertion of the gender identity or any other evidence that the gender identity is sincerely held as part of a person’s core identity; provided, however, that gender identity shall not be asserted for any improper purpose. Delaware, S. 97, 2013
This means that companies in these and other states with similar definitions of gender and gender identity can be held accountable to uphold relevant non-discrimination standards in their business practices.
However, the interpretation of how those standards apply to the underwriting of life insurance policies for transgender people has been under debate within the industry for some time.
Fortunately, many states have taken steps to make the interpretation of these laws easier as well.
For instance, Delaware has created comprehensive guidelines for life insurance companies with regards to transgender and transexual applicants. As we’ve seen above, Delaware law accepts that gender identity is not necessarily the gender that you were assigned at birth.
Since discrimination based on gender identity is prohibited by state law, this also applies to business practices within the insurance industry.
“No person shall make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contract.”
No person shall make or permit any unfair discrimination between individuals of the same class and of essentially the same hazard in the amount of premium, policy fees or rates charged for any policy or contract of accident or health insurance or in the benefits payable thereunder, or in any of the terms or conditions of such contract, or in any other manner whatever.”
In New Jersey, the law is even more explicit:
“No person shall make or permit any unfair discrimination in the issuance, extension, or renewal of a life insurance policy or in the fixing of the rates, terms, or conditions of a life insurance policy, against an individual on the basis of:
(1) an individual’s transgender status, including a diagnosis of gender dysphoria and any related medical treatments; or
(2) any apparent incongruence between the individual’s gender identity and the individual’s sex assigned at birth, or the gender designated in the individual’s insurance application or records or other identification documents.”
This means that in states with non-discrimination laws protecting transgender and transexual people, insurance company underwriters cannot discriminate against you—or place your application in a higher risk class of applicants—if you match the criteria of a Preferred class (or very low risk) applicant.
Don’t let the uncertainty of LGBT anti-discrimination laws keep you from applying for term life insurance.
At Quotacy, we’re sensitive to the challenges that transgender people may face while searching for life insurance quotes and eventually finding the right policy. Our agents are always ready to help if you’ve decided to become insured and have some questions.
Life Insurance Companies Responses Vary to Transgender Applicants
We recently 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.
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What are your life insurance options?
The two most common types of life insurance are permanent and term life insurance.
Characteristics of Permanent (or Whole) Life Insurance
- Provides coverage for your entire life
- Builds up cash value over time
- Expensive
Whole life insurance is a good option for:
- Families with special needs dependents who will need care throughout their lives
- Small business owners look to secure their company’s future and equalize inheritances
- Advanced age seniors those who wish to protect their partner or dependents and cannot qualify for term life insurance
- Those with medical conditions which disqualify them from term life insurance (these applicants may seek final expense life insurance)
» Get: whole life insurance quotes
Characteristics of Term Life Insurance
- Offered in specific term amounts such as 10, 15, 20, 25, 30, 35, and 40 years
- Affordable and customizable
- Can be laddered (purchased in multiples) to customize coverage for your family’s needs
For most people, term life insurance is the best choice.
Ready to get your quotes? With Quotacy, it’s incredibly simple.
Click through to our life insurance quotes tool and answer a few questions such as your age, zip code, smoking status, and how much coverage you’d like to apply for. No need to enter any contact information. You’ll see a range of quotes instantly.
If you want to see a more customized quote, just answer a few more questions and you’ll get a range of quotes from leading insurance companies within a few seconds. See a policy that you like? You can finish your application in less than five minutes.
That’s it. Easy and painless.
At Quotacy, we believe in inclusion, and not just during Pride Month. We do our best to match all of our clients with the best possible term life insurance plan for their needs. We will go to bat for you to get your family the protection that they deserve.» Learn more: Navigating Term Life Insurance for Domestic Partners and Families
About the writer
Natasha Cornelius, CLU
Senior Editor and Life Insurance Expert
Natasha Cornelius, CLU, is a writer, editor, and life insurance researcher for Quotacy.com where her goal is to make life insurance more transparent and easier to understand. She has been in the life insurance industry since 2010 and has been writing about life insurance since 2014. Natasha earned her Chartered Life Underwriter designation in 2022. She is also co-host of Quotacy’s YouTube series. Connect with her on LinkedIn.
I’m a trans women but have not undergone GRS. And don’t think I am. I’ve been on hormone therapy for about 5 years now and also have done breast implants and had the court legally change my name & gender marker to female including my Driver license. Do I still have to disclose that I’m transgender?? Is there a way to know if PACIFIC LIFE INSURANCE will underwrite Me and provide life insurance even term life insurance for me? I live in California in Los Angeles county.
Hi Savvy! Your medical records will inform the insurance companies of your treatments so they will find out that you are a trans woman. It’s better to be upfront about it versus them finding out for themselves.
Life insurance companies look at many factors when underwriting someone, whether you’re transgender or not. Without looking at your full application, we don’t have enough information to confidently say how Pacific Life will underwrite you. We recommend that you apply with a broker who can shop your case around to many different life insurance companies, including Pacific Life. Some life insurance carriers will treat hormone therapy/medication differently than others. And some carriers will underwrite you as the gender you were born with versus the gender you are. It all depends on the carrier. You can apply online through us here at Quotacy and we’ll shop around for you.
Your agent will let you know all your options and set realistic expectations. We’ll help find the best policy for you. But, there’s no obligation to buy if you end up not being satisfied with any carrier offers.
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.