Getting life insurance should not be an obstacle for anyone in the LGBTQ community. Insurers cannot discriminate against you in any capacity due to your sexual orientation or gender identity. However, there may be some nuances for LGBTQ individuals to consider when getting life insurance, such as family relationships and gender identity.
The LGBTQ community encompasses people of various identities and orientations, which means there’s no one-size-fits-all approach to planning for your future. Shopping around for a policy is the best way to find an insurer that honors your identity and will offer you the lowest prices for your profile.
Key takeaways
Insurers cannot discriminate against LGBTQ individuals
If you are a part of the LGBTQ community, you can still get competitive coverage, but there are personal considerations to keep in mind
Shopping around with multiple insurers is the best way to find coverage that honors your profile
Buying life insurance if you’re in a domestic partnership
In 2015, the supreme court legalized same-sex marriage in the U.S. But still, many couples opt for domestic partnerships or civil unions regardless of their sexual orientation. If you’re in a domestic partnership or civil union, there are no limitations in naming your partner as your life insurance beneficiary as long as there is insurable interest.
Insurers cannot prohibit you from listing a beneficiary because of sexual orientation or gender identity. But they may ask you to provide documentation that demonstrates how your listed beneficiary will be financially impacted if you die prematurely.
If you and your partner share finances — such as living expenses, assets, or a home — there is insurable interest. Insurable interest is required for all life insurance applicants, regardless of sexual orientation or gender identity.
Buying life insurance if you’re nonbinary or genderqueer
If you identify as nonbinary or genderqueer, you’ll likely undergo the underwriting process based on the gender you were assigned at birth.
At this time, most insurance companies only allow applicants to choose between male or female when assigning their gender on a life insurance application. Insurance companies typically — but not always — evaluate your risk based on your gender assigned at birth.
Though some insurance companies may have to evaluate you on your gender assigned at birth, rather than your gender identity, there shouldn’t be a large impact on your rates. Men pay slightly higher life insurance rates than women across the board, but you won’t receive a lower health classification based on your gender.
Buying life insurance if you’re transgender
Life insurance companies cannot increase your rates or deny you coverage if you’re transgender, have had gender confirmation surgery, or take hormone medication. However, if you’re scheduled to undergo gender confirmation surgery, your application may be postponed until after the surgery is completed due to the risks associated with surgery.
While most insurers will honor your actual gender during the application process if you’re a transgender man or woman, some will underwrite you based on the gender you were assigned at birth.
This may impact how much you pay for coverage because women pay lower rates than men across the board. You can find an insurer that will honor your actual gender by shopping around with multiple insurers for a policy.
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Buying life insurance if you’re HIV positive
Life insurance options for people who are HIV-positive have always been limited — not all insurers offer coverage to applicants that have received an HIV diagnosis. Also, available policy options are generally more expensive because HIV-positive applicants receive a lower health classification.
However, there are still coverage options available for HIV-positive applicants. Guaranteed issue life insurance is available to most applicants, regardless of their health status.
Guaranteed issue life insurance policies — a type of coverage aimed at covering final expenses, like a funeral, and offers near-certain approval — are far more expensive than a traditional term life policy, but provide some financial security for your family if you cannot get it elsewhere.
Buying life insurance if you’re taking PrEP
If you take PrEP to prevent getting HIV, there will be no impact on your life insurance application. Because PrEP is preventative medicine and doesn’t signify that you have a medical condition, insurers won’t increase your rates.
However, you should be completely honest about any medications you’re taking. Information that is intentionally not disclosed during the application process may invalidate your policy later on or disqualify you from getting the best rates during underwriting.
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Life insurance rates for LGBTQ individuals
Insurers cannot raise your rates or deny coverage if you are LGTBQ — the LGBTQ community pays the same amount for life insurance as their cisgender and heterosexual counterparts.
While a serious medical condition or planned surgeries may increase your rates or postpone coverage, this is regardless of sexual orientation or gender identity.
Here’s how much you can expect to pay for coverage.
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
|---|---|---|---|---|
25 | Female | $14.39 | $21.01 | $32.53 |
Male | $17.26 | $27.13 | $43.73 | |
35 | Female | $16.71 | $25.76 | $42.01 |
Male | $18.88 | $30.79 | $51.05 | |
45 | Female | $28.90 | $48.43 | $86.32 |
Male | $35.84 | $61.49 | $112.47 | |
55 | Female | $61.86 | $111.35 | $206.69 |
Male | $84.59 | $153.76 | $281.13 |
Methodology: Average monthly estimated rates for male and female non-smokers in a Preferred health classification with a 20-year term length. Rates are based on the monthly Policygenius Life Insurance Price Index. Prices in the index are determined by internal actuarial rate tables for life insurance carriers that offer policies through the Policygenius marketplace: Banner Life, Brighthouse Financial, Corebridge Financial, Lincoln Financial, Foresters Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Illustration valid as of 06/01/2023.
The best life insurance companies for LGBTQ individuals
Because each insurance company treats each application on a case-by-case basis, finding the right company for you will require shopping around for a company that honors your needs.
As a member of the LGBTQ community, there are additional factors you may want to account for when applying for life insurance. For example, some insurance companies may honor your gender identity, while others may not.
Working with a broker to get coverage ensures that you get the lowest possible price for your profile.
Frequently asked questions
Can insurance companies discriminate against LGBTQ individuals?
No, insurance companies cannot discriminate against LGBTQ individuals in any capacity. Your premiums and eligibility for a policy cannot be impacted by your sexual orientation or gender identity.
What is the best life insurance company for LGBTQ individuals?
Because every life insurance company has its own guidelines, there is not one particular life insurance company that is recommended for LGBTQ individuals over the other.
Can you buy life insurance if you’re nonbinary or genderqueer?
Yes, but you’ll have to choose between a male or female designation in your life insurance application.
