Insurance
HIV testing and insurance
Insurance and the law
Insurance, HIV and sexuality
Refusal of insurance
GPs and insurance
Mortgages and life insurance
Motor insurance
Travel insurance
Further information and advice
HIV testing and insurance
It is still widely believed by the general public that having an HIV test will adversely affect life insurance or mortgage applications and this has led to reluctance to test for HIV. However, as long ago as 1994 the Association of British Insurers (ABI) stated that a previous negative HIV test should not affect an application for insurance. Guidelines published by the ABI in July 2008 provide more detailed advice on best practice for doctors and insurers.
In particular, you should know that applicants for insurance will not be required to declare ’negative’ HIV test results. However on all applications for life insurance, critical illness cover and income protection insurance, you will be asked if you have tested positive for HIV. If the answer is ’yes’ you must say so. The wording that appears on application forms is:
"Have you ever tested positive for HIV, hepatitis B or C, or are you awaiting the results of such a test? If the result is negative, the fact of having an HIV test will not, of itself, have any effect on your acceptance terms for insurance."
If you have had a positive result it is not always possible to get insurance cover. There are a few specialist insurers that offer life cover but, where this is available, it can be costly.
The British Insurance Brokers Association (BIBA) can put you in touch with an insurance broker who can search for a specialist insurer on your behalf. Contact details are on their website: http://www.biba.org.uk/ConsumerHome.aspx
Insurance and the law
An insurance company is not legally obliged to insure anyone, nor do they have to give reasons for refusing insurance.
Whenever you apply for any form of insurance, the insurance company will ask you to answer some questions. If the company issues you with a policy and later finds out that you answered untruthfully, they can treat the policy as void and refuse to pay out on any claims. They may also be able to keep any premiums you have paid.
The principle to remember when completing an insurance proposal is that you must tell the company about anything which might affect their decision whether or not to insure you, or on what terms, even if they do not specifically ask. As it can be difficult to decide what information you should volunteer, it is best to seek professional advice before submitting a proposal.
Insurance, HIV and sexuality
In the past, many gay men applying for life insurance felt they had been treated unfairly, mainly due to the practice of asking about sexuality on application forms for life insurance, critical illness cover and income protection insurance.
The ABI Statement of Best Practice on HIV and Insurance issued in July 2008, ended this practice and other intrusive personal questions. It also addressed the common misconception that simply taking an HIV test would have a detrimental impact on insurance applications made by gay men. Gay men should now be able to obtain reasonable levels of insurance without HIV testing.
Refusal of insurance
Life insurance companies always ask if you have ever had an insurance application turned down, or accepted on special terms such as a higher premium. If you have they will ask why, or they may simply turn down your application on this ground alone.
You should, therefore, make sure you do not get yourself into the position of being refused life insurance. If you think your proposal may be refused it is better to withdraw it yourself before they have a chance to refuse you. You should do this in writing. You do not have to give a reason.
If you are refused life insurance or accepted on special terms for health reasons, you will be entered on a computerised list called The Impaired Lives Register which insurance companies share. If you later apply to another company your name will show up.
GPs and insurance
Insurers only contact GPs in a minority of cases and only with your consent. This is usually done to get more information on a medical condition you have disclosed. You should not assume your insurer will contact your GP. It is your responsibility to answer questions on your application form to the best of your belief.
The ABI and the British Medical Association (BMA) have an agreed General Practitioners’ Report form (GPR). GPs use this form to report medical information to insurance companies. The GPR does not include questions on patient sexuality and this information, even if known, should not be disclosed to insurers.
GPs are required to inform insurers if a patient is HIV positive or is awaiting an HIV test result. They will not notify insurers of any negative tests that have been taken.
GPs are required to disclose sexually transmitted infections that have long-term health implications. However, they should not disclose a single instance of a minor sexually transmitted infection.
Mortgages and life insurance
Some mortgages require the borrower to take out life insurance, others do not. However, the lender may still insist on life insurance depending on how much you are borrowing and on the value of the property.
Endowment mortgages require life insurance. Pension-linked mortgages and foreign currency mortgages also usually require life insurance cover.
If you already have endowment life insurance, you can use it for a new endowment mortgage without any questions being asked and provided you are not seeking to increase the sum covered in order to pay off your mortgage. It is therefore important not to surrender an existing life insurance policy, unless you have no alternative.
If you think you are likely to be refused life insurance you should not apply for an endowment mortgage or any other mortgage which requires life insurance cover. Instead you should consider applying for a repayment mortgage or an interest-only mortgage.
If you are applying for a straight repayment mortgage, which is available from many lenders without any life insurance cover, you should be aware that the lender may want you to have a mortgage protection policy. This policy pays off the mortgage if you die before all the money you have borrowed has been paid back.
A mortgage protection policy is a form of life insurance and you should therefore not agree to apply for one if you are likely to be refused life insurance. On the other hand, a lender may want you to pay for a mortgage guarantee policy, which the lender will claim on if they have to sell your property and they get less for it than they lent you: this is not life insurance and you will not be asked health questions.
Whatever your financial position we advise that you should always seek advice from an independent financial advisor before making any final decisions.
Motor insurance
Some motor insurance companies ask questions about what medication you are taking and any illness or medical condition you may have.
If you are asked a question you do not want to answer, try another company that does not ask the same questions.
Travel insurance
Travel insurance policies usually exclude cover for pre-existing medical conditions, and some specifically exclude HIV. However you may still want to consider cover for an illness that is unrelated to HIV, or if you have an accident, or lose your luggage or have something stolen.
There are now some insurance companies who are willing to provide cover for people with HIV. ACET Jersey cannot recommend a particular provider of travel insurance. We recommend that you shop around for a range of quotes and choose a provider which best meets your particular needs.
The following providers are a good place to start:
Freedom Travel Insurance
0870 774 3760
www.freedominsure.co.uk
Easy Travel Insurance
0870 345 2222
www.travelinsurance.com
Rothwell and Towler
01404 41234
www.travelfirst.co.uk
Further information and advice
Voluntary organisations like ACET cannot give you financial advice, but can advise you on the law and problems in the area of insurances and mortgages generally. Advice is available from:
- Terrence Higgins Trust, 52-54 Grays Inn Road, London WC1X 8JU. Telephone 0845 12 21 200. The Advice Centre also publishes a leaflet on insurance.
- The Hæmophilia Society, First floor, Petersham House,57a Hatton Garden, London, EC1N 8JG. Telephone 020 7831 1020. This organisation publishes leaflets which give advice on all aspects of insurance for people with hæmophilia.
An independent financial advisor is the best place to start if you need financial advice. However both mortgage brokers and independent advisors tend to be ill-informed about the ways in which HIV-related insurance problems can be avoided.
If you have a complaint about the way in which you have been treated by an insurance company, the first thing you should do is complain to the company. If you do not get satisfaction you can contact the Insurance Ombudsman or the Personal Investment Authority Ombudsman who can deal with complaints that show bad or inefficient practice.
- The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR Telephone 0845 080 1800.
Last updated 2010