A new consumer guide for gay men on HIV and life insurance has just been released by the Association of British Insurers (ABI), writes Lucy Quinton.
The guide was published on the back of the ABI's Statement of Best Practice on HIV and Insurance implemented back in October 2005 in a bid to ensure gay men are treated fairly when applying for insurance.
Over the past 10 years, many gay men applying for life insurance felt they had been treated unfairly, said the ABI. The new consumer guide suggested this was, "mainly due to the practice of asking about sexuality, commonly known as 'the gay question', on application forms for life insurance, critical illness and income protection".
Guidance released last year ended this practice and other intrusive questions. It also addressed the misconception that simply taking an HIV test will have a detrimental impact on applications made by gay men.
Jonathan French, spokesperson at the ABI, said the new consumer guide had two functions. It was designed to "provide factual information to the gay community on changes that have been made to address the perception they were being treated unfairly with regard to insurance applications, and also to explode some of the myths that still exist".
Such myths include having to declare an HIV test, even if the result is negative when people only have to declare it if they are diagnosed with HIV. This mirrors the idea that any pre-existing medical condition must be declared at the point of application.
Alan Lakey, principal at Highclere Financial Services, acknowledged that this is an area most advisers feel uncomfortable with. He said: "While I am aware of a number of 'specialist' gay advisers it is true to say that most gay clients are unlikely to confide in their adviser, certainly not initially."
He added: "Any such guide will prove useful and will also serve to educate IFAs as much as clients. I think the ABI should be applauded for being willing to tackle what is obviously a delicate issue."
