Gay Discrimination in action

Gay discrimination in financial services

These real cases highlight gay discrimination in action:

	Gay discrimination in life assurance
	Gay discrimination in pensions

Gay Discrimination in Life Assurance

When Alan and Michael got a mortgage for the house they were buying together, they wanted life and critical illness insurance to protect the loan and each other in case one of them died, or suffered a serious illness, before the loan was repaid. Their mortgage lender gave them an application form for a well-known life assurance company and they applied for a joint policy to cover them for 25 years. The quote they were given seemed reasonable at £67 a month.

The life company responded to their application by sending them each a 'lifestyle' questionnaire, which asked if they were gay. Naturally, they found this very intrusive, but they wanted the insurance so they answered it truthfully.

It didn't stop there - the insurance company asked them to take HIV tests (negative) and they had to have medicals, which meant taking time off work. And it all took extra time. By this point they had moved in to their new house and Michael was concerned that they had no cover for their mortgage - he cycled to work in Central London every day and was worried about what could happen if he were killed on the roads.

Finally, they got a letter from the insurer, who was pleased to advise them that their application was acceptable subject to an additional premium of £100 a month. They had been 'loaded' for no other reason than their sexuality. Insurance that would have cost a straight couple £67 a month was going to cost Alan and Michael £167!

At this point, they came to Isis Financial Planners and we were able to find them the same cover with an insurance company that did not load their premiums.
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Gay Discrimination in Pensions

Brett had worked for the same company since leaving school but left the company aged 43 to work in a freelance capacity. This meant that he left the company pension scheme. At age 45, Brett was diagnosed with a critical illness. Concerned about his finances he contacted Isis Financial Planners Ltd. A review of Brett's circumstances revealed that should Brett die before reaching age 60, the only return available for his partner Nathan under his occupational pension scheme was a return of his contributions. Had the pension scheme recognised Nathan he would have received a pension for life of £5000 on Brett's death.

 Isis Financial Planners Ltd advised Brett to ask for a transfer value from the scheme. This he did and was shocked to discover that whilst the transfer value was £115000, the return on death was only £32500. As Brett was seriously ill he was very concerned to ensure Nathan's financial future. Isis Financial Planners Ltd advised Brett to transfer his pension to a stakeholder pension. This immediately increased the death return for Nathan to £115000. Although this meant that Brett gave up his pension guarantee, he felt his illness was so serious that it was worth it. The amount would be payable to Nathan without liability to Inheritance Tax, and without the need the need to wait for probate to be granted after Brett's death. Brett also had the option to purchase an impaired life pension if required and this could continue to be payable to Nathan after his death.
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