Life Insurance for Same-Sex Couples

All same-sex partners should think about what would happen to them financially if one should die before the other. This is especially true of partners who choose not to enter into a civil partnership.

Since the advent of civil partnerships in the UK, same-sex couples who enter into civil partnerships have the same rights and benefits as heterosexual couples when they marry. These include: ‘next-of-kin’ rights; pensions and benefits; tax implications; inheritance; tenancy; bereavement and registration of death. So, if one partner dies, there may be some benefits from the workplace, for example, which the surviving partner would get.

Same-sex partners who choose not to enter into a civil partnership  should be aware that they will not get these benefits. They should then consider taking out appropriate life insurance. Even those in a civil partnership should look at their own circumstances and see if life insurance is appropriate. This is a complex field and we recommend that you seek independent financial advice.

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums.

As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy.

The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder.

Insured events that may be covered included, for instance, serious illness. Life insurance policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

While the reasons for purchasing life insurance are universal, the needs of members of the LGBT community can differ from those of the mainstream. Look on line - there are growing number of financial planning companies specialising in meeting the needs of LGBT people in general.