Summary
Gay couples in a civil partnership may pay higher prices for life insurance policies. But as this article explains, that is about to stop.
Life insurance companies embrace equality.
One of the last signs s of financial discrimination against homosexuals has been removed following a deal agreed between gay campaigners and the the Association of British Insurers (ABI).
The ABI has agreed to advise its members to scrap an exemption which allows them to treat gay couples in a civil partnership, differently to married heterosexuals. Until now, the exemption meant that gay couples could be charged higher premiums for life and critical illness insurance and other protection insurances.
But the ABI issued proposals to remove the exemption, claiming it was not necessary for insurers to differentiate between married couples and civil partnerships. It added that most insurance companies did not differentiate on the married/cival partnership basis, and all companies would stop doing so very soon.
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He added, "For example, it is sensible to differentiate in the case of gender or age. But the industry does not seek exemptions where there is no reason for one. There is no need for leglislation to differentiate between marriages and civil partnerships."
The change of heart by the insurance industry follows an extensive and protracted campaign by the gay community with the support of its lobbying group, Stonewall. The Director of Public Affairs at Stonewall, claimed that insurance premiums should be based on a person's behaviour rather than their sexual orientation. The victory, they said, ends legalised financial discrimination against gays and lesbians.
This is the second triumph the gay community has scored over the insurance industry. Back in 2004 they successfully campaigned against ABI guidelines on the issue of HIV and insurance. Since then, only one issue has remained - that civil partners could be discriminated against in comparison with married heterosexuals. To many it was always surprising that the exemption was allowed to persist in the first place.
In practice much of the life insurance industry had already accomodated these new principles. For example, many insurance companies will underwrite insurance for civil partners of up to £1million without requiring an HIV test and the same criteria applies for married couples. You just need to know which insurance companies to go to. But nevertheless it is important that these exemption are removed officially.