The most important way for a same sex couple to financially protect their spouse and their children is through life insurance.
Currently, there are 17 states that allow same sex marriage in the U.S. and that number is likely to improve over time.
But, if you are a gay couple and are considering using life insurance as a viable means to provide for your loved ones, you should also know that not all life insurance companies treat same sex partners the same as heterosexual couples due to financial statute variances. Underwriting for same sex situations, especially from a financial underwriting perspective is still evolving, primarily because legislation relative to taxation et al, are still developing.
Reasons Why Gay Couples Should Use An Independent Life Insurance Agent
The reason why a same sex couple should always use an independent agent is because they have access to numerous life insurance companies.
An independent agent doesn’t represent a single or just several life insurance companies, but can comparison shop the products offered through multiple companies.
Medical underwriting should really see no difference for same sex individuals as carriers have been unable to underwriter “lifestyle” for many years due to discrimination laws. Same sex people or not have medical conditions underwritten same way, and if they do not have any medical conditions, decisions must be same as well.
Finding the right insurer if you are in a gay relationship or have health issues such as cancer, are a smoker, or if you are a diabetic is vital because only an independent agent can find you the best policy at the most affordable price.
The independent agents at Abrams Insurance Solutions can help you find the best life insurance policy for gay same sex couples because we have access to over 70 companies and will shop each and every one on your behalf. This will save you time, frustration and money with your life insurance purchase.
If you need help with planning your financial needs, then call us at Abrams Insurance Solutions right now at 858-703-6178 as we can provide you with valuable advice and especially for the individual needs of a gay couple.
How Much Life Insurance Do Same Sex Couples Need?
The amount of life insurance a same sex couple requires can be substantially different from a heterosexual couple and may also depend on the state in which you live.
The reason is because both state and federal laws can vary quite significantly and are constantly changing. This is another excellent reason why you should discuss your particular needs with an independent life insurance agent.
Your life insurance needs may be different in a state which has approved same sex marriage as opposed to a state which does not recognize it. Different needs will also apply to those couples who are in a common law relationship and to those who are married, even in those states which have approved same sex marriages.
Some of the factors that you should consider in planning how much you will need to be adequately insured include:
• Funeral and expenses
• Enough to cover all your debts and mortgage
• Estate and other inheritance/death taxes
• Children’s education
• Provide for your lost income
These are just some of the most important issues when it comes to deciding on how large a policy you will require and your objectives in using a life insurance policy, but there are others as well because each couple will have different needs.
If you want to get a rough idea on how to either calculate how much life insurance you should obtain then use our handy “Life Insurance Needs Calculator” or, if you need to find out how much a policy will cost then you can get a Life Insurance Quote using our convenient calculator on this page.
Types of Life Insurance Policies for Same Sex Couples
There are 2 types of life insurance policies you can choose from and they include:
• Term Life Insurance
• Permanent Life Insurance
Term Life Insurance For Same Sex Couples
Term life insurance is the most basic form of life insurance policy you can buy. It is also the most affordable and can fit almost any budget.
Term insurance is called term because you buy it in periods of time such as 20 or 30 years. Policies can be renewed when they are about to expire.
This can be risky because life insurance becomes increasingly more expensive to buy as you age. If you have experienced a significant decline in your health, you may not even be approved at all for a standard policy.
The first thing to remember when buying a term policy is to give careful thought to how much you will need not just in your current economic state but also down the road. The second is to buy a term long enough so it will provide adequate coverage sufficiently far into the future.
Term insurance is very flexible and you can also opt for term policies which do not require a medical examination but they tend to be more costly.
Permanent Life Insurance For Same Sex Couples
Permanent policies are more expensive to purchase because not only do they provide you with death benefits but they also have the additional feature of a cash value accumulation component which builds over time and which you can use towards your retirement for a supplemental income, estate planning or for charitable donations.
There are varieties of permanent life insurance policies including:
• Whole Life
• Universal Life
• Indexed Universal Life
• Variable Life
These policies vary from each other and are somewhat too complicated to cover briefly in this article.
No Exam Life Insurance for Same Sex Couples
If you need a policy now, or hate needles, there are many life insurers that are now providing No Exam Life Insurance. These policies are bit more expensive but you don’t have to bother with a medical exam and can get a policy very quickly such as in just a few days or as fast as 15 minutes. For those who are squeamish about medical tests and want convenience then consider a no medical exam policy.
If you are thinking of considering one of these policies then you are strongly advised to discuss your needs with an experienced and independent insurance agent such as you will find here at Abrams Insurance Solutions so call us at 858-703-6178 for more information on these policies.
Advantages of Having a Same Sex Couple Life Insurance Policy
Succession and estate taxes can financially ruin the survivor if you don’t have some means of protecting yourself such as with a life insurance policy. Your named beneficiary will receive the death benefits in a lump sum payment and in most instances will receive the insurance proceeds as a tax deferred amount.
This means that your loved ones can use the money however they need because a life insurance policy can make all the difference.
At Abrams Insurance Solutions, we also offer a full range of insurance coverage for same sex couples such as Health Insurance, Disability Insurance, Long Term Insurance and even Travel Insurance.
If you are a same sex couple and need to learn more about which life insurance policy is the right one for you then call us at 858-703-6178, to purchase the best insurance policy for your family right now.