Life insurance companies can’t discriminate based on sexual orientation or gender identity, so you shouldn’t face obstacles when shopping for a policy. LGBTQ individuals will go through the application process just like everyone else — although they may have an extra consideration when it comes to 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 or buying a life insurance policy. Working with an independent broker can help you compare policies to find the best coverage for you.
Buying life insurance if you’re in a domestic partnership
Whether you’re married, in a domestic partnership, or in a civil union, there are no limitations in naming your partner as your life insurance beneficiary as long as there’s insurable interest — meaning you’re financially connected to one another.
Insurers can’t 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 transgender
Life insurance companies can’t 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. This is typically the case with any kind of pending surgical procedure — not just gender confirmation surgery.
While some insurers will honor your actual gender during the application process if you’re a transgender man or woman, many will assign your rates based on the gender you were assigned at birth.
This may impact how much you pay for coverage because women pay lower life insurance rates than men across the board. An independent broker like Policygenius can help you find an insurer that will honor your actual gender by comparing guidelines from multiple insurance companies.
Buying life insurance if you’re nonbinary or genderqueer
If you identify as nonbinary or genderqueer, you’ll likely still have to indicate the gender you were assigned at birth on your formal application
At this time, most insurance companies only allow applicants to choose between male or female when assigning their gender on a life insurance application. This is because the average cost of life insurance is slightly higher for men than it is for women, because women have longer life expectancies.
However, you won’t pay more for life insurance for being nonbinary or genderqueer — your premiums would be the same as those for cisgender applicants.
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 people who have received an HIV diagnosis. Available policy options are generally more expensive because insurance companies view HIV as an increased insurance risk.
However, there are still coverage options available for HIV-positive applicants. Some companies have more flexible guidelines than others when it comes to term life insurance. Working with an independent broker can help you compare all of your options.
Guaranteed issue life insurance is also 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, that offers near-certain approval — are far more expensive than traditional term life policies, but provide some financial security for your family if you can ’t 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 withheld during the application process may invalidate your policy later on.
Life insurance rates for LGBTQ individuals
Insurers can’t 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.
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 |
|---|---|---|---|---|
20 | Female | $15.01 | $22.66 | $33.63 |
Male | $19.19 | $30.20 | $47.61 | |
30 | Female | $15.17 | $22.99 | $36.90 |
Male | $18.19 | $29.33 | $48.88 | |
40 | Female | $21.66 | $35.27 | $60.64 |
Male | $25.38 | $42.94 | $75.25 | |
50 | Female | $43.92 | $78.30 | $139.47 |
Male | $56.69 | $102.50 | $188.26 | |
60 | Female | $107.84 | $194.16 | $354.64 |
Male | $149.38 | $268.09 | $500.17 |
Methodology: Rates are calculated for male and female non-smokers in a Preferred health classification obtaining a 20-year $250,000, $500,000, or $1 million term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 01/01/2024.
