Insurer first to cover gay men
THE GUARDIAN - 4TH JUNE 2002
What is claimed to be Britain’s first insurance policy aimed specifically at homosexual men was put on the market yesterday.
The income payment protection insurance policy insures against contracting HIV and developing Aids, does not require a medical examination, and is not loaded with a heavy premium.
Called Pride without Prejudice, the policy – printed on pink paper – is underwritten at Lloyd’s of London and sold by Burgesses.
“It has been suggested that offering HIV cover to gays is financial suicide. But carve away the prejudice, and the risks is minimal and so can be absorbed within our standard rate,” said Simon Burgess, a Burgesses managing partner.
Premiums start at £3.25 per £100 of monthly benefit, which Mr Burgess said was half the rate for income protection policies charged by banks. Like other mortgage payment protection insurance or income payment protection insurance, the policy covers the insured for unemployment, disability, accident or illness. But most similar policies exclude HIV, Aids and sexually transmitted diseases.
Insurers ask applicants if they have ever been tested for HIV. Answering “yes” leads to automatic refusal. If applicants tick the “single male” box, they are sent a lifestyle questionnaire.
“If the insurance company ascertains from this that the person is gay, they will either be refused cover, or offered it at incredibly high premiums,” said a spokesman from the Terrence Higgins Trust, a charity providing services to HIV positive and gay men.
Ivan Massow, a financial adviser specialising in advising gay men, is working with sympathetic MPs hoping to introduce legislation making it illegal for insurers to load premiums because of an applicant’s sexuality.
