At Zurich, we believe everyone should have the opportunity to get the cover they need to protect themselves and the people they love through appropriate insurance solutions. Members of the LGBTQ+ community should never feel judged or discriminated against when they apply for insurance.
When you apply for a life insurance product, your application will usually go through a process called underwriting. Put simply, underwriting is how insurers assess the likelihood that someone will claim on their insurance.
In underwriting we consider your health and medical history, if you smoke, your history of recreational drug use, your occupation, pastimes, residency/travel and your income/financial situation. That’s the sort of information we need to work out if you’re more or less likely than other people to make an early claim due to progression of an existing medical condition, develop a health condition or if you’re at higher risk of suffering a serious injury.
Just as men are more likely than women to suffer from heart disease, some members of the LGBTQ+ community can be statistically more likely1, 2 to have certain health conditions3 or risk factors. But being a member of the LGBTQ+ community does not mean you’ll automatically be assessed as being at higher risk. In fact, at Zurich, unless you have an associated medical history, are taking treatment and/or awaiting surgery, you will only be asked for information relevant to our underwriting assessment. We do not ask questions about sexual orientation. We always look at your individual circumstances, so we can provide cover that’s right for you.
There are some life insurance cover options available without underwriting – for example, if you have superannuation you will likely have access to default insurance which can provide cover for certain cover types up to certain limits without underwriting. Other products may be sold by banks, mortgage brokers or online with limited or no underwriting – these products often have more limited terms or broad exclusions, so it is important you check the terms and conditions of these products to make sure they are appropriate for your needs.
How your level of risk affects your premiums
If your level of risk is similar to most people of your age and gender identity, you’ll pay a ‘standard premium’ for your insurance cover. If your risks are higher, we may not be able to offer cover at a standard premium.
Possible outcomes are:
- that you are offered cover at a higher rate (a ‘loading’), which covers the additional risk within the cost of the policy premium, so that you can still make a claim, or
- cover is offered with an exclusion – meaning you cannot claim for that specific condition or event, or
- regrettably, cover may be declined where we are unable to offer any terms due to the increased risk.
Of course, we’ll always explain why we have assessed an application to be at greater risk when we give the decision on an application. As a member of the Financial Services Council, Zurich is bound by the Life Insurance Code of Practice. The Code stipulates that the Insurer should provide the ‘reasons for our decision’ when making a decision on an application. Any insurer bound by this Code will do this, as well as making sure you understand what that means for your cover and premium.
If you’re concerned about how your individual circumstances may affect your ability to obtain insurance, talk to a financial adviser before you apply. They can explain your options and support you through your application process.
What will you be asked about?
People sometimes worry that the underwriting process will be intrusive, so it’s important to understand that it is not about judging you. Zurich considers cover for all Australians, and we understand that every person is unique.
Underwriting is simply about assessing risk and working out how to properly price your policy, or if any exclusions or loadings should apply. Some things that might affect your risk assessment are if you:
- smoke, drink alcohol use recreational drugs, or have a history of their abuse or misuse
- have a current or past history of a health condition, such as HIV or a mental health diagnosis and/or treatment (such as medication or counselling)
- have a family medical history of hereditary conditions, such diabetes, heart disease or cancer
- have past or planned surgery or pending medical investigations
- take medications – for example pre-exposure prophylaxis (PrEP) or hormone therapy treatment
- enjoy a more hazardous hobby, such as sky diving or rock climbing
- are residing in Australia on a temporary VISA or have planned travel overseas, especially to a high risk country (as determined by DFAT)
- have an occupation which includes hazardous duties, such as work at heights or with explosives.
If you’re considering applying for an insurance policy that is underwritten and are concerned about how your personal circumstances might affect your application, please speak to a financial adviser. They’ll work with you to understand your individual needs, then help you find the right cover for you.
