Gay men and women taking out more life cover

Size of average policy has risen 28% since 2009

Gay men and women are buying “far more” life insurance than before, according to analysis published today.

In fact, the average life assurance policy taken out by the gay community is now £242,578, 6% up from last year. The figures for 2010 and 2009 were £217,887 and £189,311 respectively, meaning that the average size of a life assurance policy taken out within the gay community has now grown in total by 28% since 2009.

Chris Morgan, marketing manager of Compass Mortgage & Insurance services, the financial advisers that carried out the analysis, said the continuing rise is partly due to improving insurer attitudes.

An increasing number of insurers are welcoming gay customers, while the number of ‘mainstream’ life offices providing cover for people with HIV continues to increase.

Morgan said: “The average life assurance sum assured for the gay community has once again continued to increase over the last year. This indicates that gay men and women are now finally getting over the discrimination imposed on them by the insurance industry during the previous two decades.”

Compass also said that 20% of gay men and women take out income protection alongside life assurance. It is thought that the proportion taking out critical illness cover is similar.

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