Life Insurance for Transgender and Nonbinary Canadians

Life insurance rates are typically affected by a policyholder’s gender and sex. For example, those assigned female at birth often pay lower rates than those assigned male for the same policy. While all Canadians, regardless of gender identity, are still able to qualify for life insurance, being transgender or nonbinary can pose certain challenges to the life insurance process. This blog will explain in depth everything you need to know about life insurance if your gender identity differs from that typically associated with the sex you were assigned at birth.

In this article: 

• Can You Get Life Insurance If You’re Transgender or Nonbinary
• How Does Gender Identity Affect Life Insurance
• How to Identify Your Gender on a Life Insurance Application
• Life Insurance Medical Exams for Transgender and Nonbinary Individuals
• How Gender Affirmation Surgery Affects Life Insurance
• Gender Inclusive Life Insurance Providers In Canada
• How to Apply for Life Insurance as a Transgender or Nonbinary Individual
• Frequently Asked Questions (FAQs) About Life Insurance for Transgender and Nonbinary Individuals

Can You Get Life Insurance If You’re Transgender or Nonbinary?

Yes, you will still be able to qualify for life insurance regardless of your gender identity. Life insurers will not discriminate against those whose gender identities differ from what was assigned at birth.

How Does Gender Identity Affect Life Insurance

While some life insurance providers use the gender identity you provide them to determine life insurance premiums, many use your sex assigned at birth to determine policy rates. While this can be non-affirming for those who don’t identify as their sex at birth, it’s important to keep in mind that your sex at birth can determine your mortality rate, the risk of certain health concerns, and other data that insurers use when calculating life insurance costs. For example, those assigned female at birth (AFAB) will benefit from lower premiums since data suggests AFAB individuals have longer life expectancies.

How to Identify Your Gender on a Life Insurance Application

On a life insurance application the terminology used to ask about an applicant’s gender or sex will vary between insurers. Since gender is a more expansive term, many insurers will ask for an applicant’s sex instead. However, this means that you will need to indicate whether you are currently male or female or what you were assigned at birth. This can be confusing for those who do not identify with their sex at birth or are in the process of transitioning. Some insurance providers suggest you should answer with the sex you were given at birth to avoid technical problems, or long wait times for application approval. However, if you would like to indicate a different sex then what was assigned at birth, you may need to provide documentation such as relevant medical records. If you aren’t sure what to indicate and need clarification you can always discuss the application with your life insurance broker or agent as well.

Life Insurance Medical Exams for Transgender and Nonbinary Individuals

When applying for a standard life insurance policy, you will need to provide information about your medical history and undergo a life insurance medical exam. Life insurance providers will also have access to your medical records, so it’s important to be as honest and accurate as possible with the information you provide. However, if you would not like to undergo a medical exam in order to qualify for life insurance you can also choose to apply for a no medical life insurance policy instead.

Factors that could influence the cost of life insurance premiums for gender diverse individuals include:

How Gender Affirmation Surgery Affects Life Insurance

If you have had gender affirmation surgery in the past, you may be asked to provide documentation related to your surgery such as medical records or evidence of hormone therapy. You should use the sex you now identify as post-transition on your life insurance application and will need to provide documentation, such as an updated driver’s license, passport, or birth certificate, showing that your sex is legally recognized.

For those who are currently in the process of transitioning and have plans to get gender affirmation surgery in the next few years, you may need to delay your life insurance application until after you’ve successfully had the surgery and recovered. This is because the outcome of the surgery and any potential complications will affect the risk profile insurers use to determine your rates.

Here is a timeline demonstrating what life insurance providers expect from applicants who are interested in, or have already had, gender affirmation surgery:

Gender Inclusive Life Insurance Providers In Canada

In Canada, discrimination based on gender identity and expression is prohibited under the Canadian Human Rights Act and the Criminal Code. So, companies are expected to respect the gender identity of their customers and employees. That being said it is still standard for life insurance companies to use assigned sex at birth for life insurance policies. While not all companies publicly disclose their policies on this issue, there are a few gender inclusive life insurance providers in Canada.

Examples of life insurance companies in Canada that are known to have gender-inclusive policies include:

Sun Life Financial

Sun Life has introduced gender-neutral underwriting in certain scenarios and is considerate of LGBTQ+ clients, including nonbinary and transgender individuals.

Manulife Financial

Manulife has been praised for offering life insurance policies that accommodate gender non-conforming individuals, with guidelines specific to transgender applicants.

Canada Life

Canada Life has updated its underwriting guidelines to be more inclusive of nonbinary and transgender applicants, providing options that better reflect the identities and medical histories of individuals beyond the traditional male/female binary.

Desjardins Insurance

Desjardins Insurance has adapted their policies to better serve the LGBTQ+ community, offering gender-neutral options and making efforts to ensure nonbinary individuals are not excluded from life insurance coverage.

IA Financial Group

IA Financial has shown a commitment to ensuring that nonbinary, transgender, and other gender non-conforming individuals have access to appropriate insurance options, including specific underwriting guidelines for these groups.

How to Apply for Life Insurance as a Transgender or Nonbinary Individual

If you are looking to apply for life insurance, it’s important to take a few steps to ensure you find the right policy for your needs. Here are some tips that may help:

Step 1: Determine your life insurance needs

The first step for anyone interested in life insurance coverage is to determine their life insurance needs. You’ll need to consider why you need life insurance coverage and what amount would cover those needs. For example, if you would like life insurance coverage to protect your spouse that you share a mortgage with, a term life insurance policy that coincides with your mortgage with enough to cover the mortgage cost would be in your best interest.

Step 2: Consider working with a licensed life insurance expert

Working with an expert who is knowledgeable about the insurance process and sensitive to the needs of their clients is a great way to ensure you find the right policy for you and your family. A licensed life insurance broker can work with you to find a policy that suits your needs and can help answer any questions and address any concerns you have throughout the life insurance process. Typically these services are offered at no cost to the client and are a great way to ensure you get personalized advice as you look for the right policy.

Here at Protect Your Wealth we are dedicated to ensuring all our clients get the time and consideration they need. Consider reaching out to us today for personalized advice and help with the life insurance process.

Step 3: Choose a gender inclusive life insurance provider

The next step is to choose a life insurance provider. If you are someone who does not identify as their assigned sex at birth, it may be worth looking for an insurance provider who is known for being gender inclusive. By working with a provider who has taken the time to outline specific steps to follow as a transgender or nonbinary individual and is considerate of your gender identity, you can ensure you are treated with the proper respect and care you deserve throughout the life insurance process.

Step 4: Choose a policy and submit your application

Once you understand your coverage needs and have chosen a provider, you should consider the policies they offer and how they will help you achieve your financial goals. Life insurance policies you can choose from include term life insurance which provides coverage for a specified amount of time, permanent life insurance which offers lifelong coverage and premiums that never increase, and no medical life insurance which is a great option for Canadians with medical conditions who may not qualify for standard life insurance policies.

Once you have chosen a policy, all that’s left to do is to fill out your life insurance application. You will likely be asked a variety of questions about your age, occupation, whether or not you smoke, your medical history, and other important information that is used to determine your eligibility, coverage amount, and premium costs. If you apply for a standard life insurance policy then you will be asked to undergo a life insurance medical exam as well and the results will be included in your application.

Step 5: Enjoy having life insurance coverage

After submitting your application, all that’s left to do is wait for approval. The wait time will depend on the insurer and the specific policy you chose. Most insurers will take only a few weeks to get back to you for a standard policy. Once you are approved you can rest easy knowing that you and your loved ones are financially protected.

Frequently Asked Questions (FAQs) About Life Insurance for Transgender and Nonbinary Individuals

Find a Solution That’s Right for You

If you are interested in life insurance as a transgender or nonbinary individual and would like advice specific to your situation, consider reaching out to an expert financial advisor. At Protect Your Wealth, we compare policies and quotes from the best life insurance companies in Canada to help all our clients find the right policy for their unique needs. We have been providing free expert life insurance solutions since 2007, and have helped many clients achieve financial security for their families.

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Dundas, London and Windsor.