Guide to Life Insurance for Transgender People

By Triston Martin Updated on Apr 13, 2023
After your passing, your loved ones will be protected financially by the funds from your life insurance policy. The proceeds from the insurance policy are used towards paying for various expenditures, including burial and funeral expenses, as well as income loss, inherited debts, and college tuition. It is an important component of financial planning for a lot of people.

When you apply for transgender life insurance or a gender non-conforming person, the process may not be as straightforward as when you apply for life insurance as a cisgender person. Nonetheless, you must be aware that life insurance is available to people of both sexes. Nobody may be turned down for life insurance just due to who they are. Also, find details about life insurance for transgender men.

Life insurance coverage for trans people

No matter what gender they are, anyone of any age may apply for life insurance. But, as a transgender, nonbinary, or gender non-conforming person, you may find that the application process raises some issues for you. Continue reading for the answers.

How to identify your gender while filling out an application

Since life expectancy is a significant factor in determining rates, life insurance firms require applicants to disclose their sexual orientation. Those assigned female at birth (AFAB) now outnumber persons assigned male at birth (AMAB) in this category in the United States; thus, people who are assigned male at birth are often obliged to pay somewhat higher rates.

The issue is this: what exactly does the firm mean regarding sex? Should you disclose the gender that you were given at birth? Or should you include your sexual orientation on the latest versions of your identification documents? What if you don't identify with any of those categories?

Some businesses ask for "gender" rather than "sex," as if these words can be interchanged with one another, which further adds to the confusion. Even if you are browsing for a life insurance quotation and are not yet ready to apply for coverage, you will be required to respond to this question.

Preparing to work with a life insurance agent

There is no assurance that the life insurance agent you interact with will have a complete understanding of transgender and nonbinary identities, even though many life insurance businesses offer personnel training on LGBTQ+ topics. The process of obtaining life insurance may be "very scary," according to C.P. Hoffman. This is because of the reasons listed above.

Someone who doesn't understand transgender issues may ask you to clarify them. Hoffman says, "Be prepared to alert them of the anticipated issues that exist that they need to work through in order to assist you acquire life insurance." "Be ready to inform them of the difficulties they'll face."

But, dealing with a life insurance broker or agent, whether over the phone, through online chat, or in person, is the best way to prevent any complications arising from queries you do not know the answers to. In addition, it is the most effective method for bringing up topics that life insurance companies haven't thought to question, which is something that Hoffman believes you will most likely have to do. You may wish to discuss the following, depending on your circumstances:

  • The gender you were given at birth versus the gender you identify as now
  • A report on the current status of your identification papers
  • Medicines used in hormone treatment
  • Plans for gender-affirming surgical procedures (if applicable)

Keep in mind that there are life insurance plans that do not need medical exams. This life insurance may be the best choice for you, even though the coverage is sometimes restricted to smaller amounts. You may find consulting with a life insurance broker or agent helpful.

How your gender identity might impact the cost of your life insurance rates

On its own, the fact that you identify as transgender or nonbinary will not impact the price of your premium. Life insurance firms aim to set prices for policies that are as accurate as they can be. The representatives will try to have the most thorough knowledge of your life expectancy.

What to expect during a medical exam

Underwriting is a life insurance company's procedure to analyze your risk profile. This evaluation considers your medical history, age, and lifestyle choices. When you apply for any kind of life insurance, whether term or permanent, you must supply information on your identity and health. Conversely, the breadth of coverage of these topics will differ from firm to company and policy to policy.

It's not always necessary to be checked out by a doctor. If a medical examination is necessary, however, the following standard procedures will be followed:

  • Your home, place of employment, or the office of an exam firm are all potential locations for the medical exam
  • You'll reply to a medical questionnaire
  • Checking the patient's height, weight, pulse, and blood pressure
  • Collection of blood samples and urinalysis results