An explanation of Life Products for gay couples...

Introduction

In this section we will focuses in more depth upon the four main Life Products  typical to gay couples.   Please call us for more specific information or other areas not covered here. 

1. Critical Illness Insurance
2. Life Assurance
3. Tax
4. Pensions

1.   Gay Critical Illness Insurance

Critical illness insurance is designed to provide you with a lump sum if you are diagnosed with one of a number of specified "critical illnesses" during the term of the policy.

Critical illness insurance policies usually cover the following specified illnesses:

• Cancer
• Heart attack
• Multiple Sclerosis.
• Stroke
• Kidney failure
• Major organ transplant

The lump sum for any purpose, though is primarily designed to cover living expenses. Some policies have a requirement that you survive for 28 days following the date of diagnosis. You could use the cash to pay off your mortgage or other debt, or simply to provide an income if you become too ill to continue work.

Some critical illness policies may also cover permanent total disability. You should check this before completing the application.

Most Critical Illness plans include HIV cover only if contracted as result of following your normal occupation i.e. a doctor accidentally being infected. Otherwise HIV is not covered and is a specific exclusion.

If you are being asked to complete a lifestyle questionnaire or to take an HIV test contact us now.  Call us now freephone on 0800 074 6918.

It is common for a critical illness policy to be combined with a life insurance policy to provide two types of cover. If you decide to purchase one of these combinations you should bear in mind that you will only be able to claim if you contract an illness, as defined in the terms of the policy, and you may lose the life cover element unless you have bought additional life cover.

You can have a joint critical illness policy with your partner, and this may prove to be cheaper than having two separate policies, but bear in mind that if one partner contracts an illness on the policy list, the other partner's cover will cease as the policy has satisfied its intended function ..

Even if you have already been loaded we can still help. Contact us now.

Call us now freephone on 0800 074 6918.

The Issues

• Life Insurers, offering Critical Illness cover, will require ALL single applicants to complete a "lifestyle questionnaire" and undergo an HIV test regardless of lifestyle.
  
• Life Insurers, offering Critical Illness cover, will increase premiums on the grounds of sexuality, irrespective of your lifestyle.
  
• Once loaded (premiums increased due sexuality) your name may then be added to a central register used by all Life Assurance companies. This can make future applications for financial products troublesome.
• You will always have to declare any loading for all future applications if asked, effectively 'marking' you for life.
  
• Lesbians do not generally face this discrimination.

2.  Gay Life Insurance

The Issues

The issues for Life Assurance are the same as those for Critical Cover, please see the above section for further details, or call us on 0800 074 6918 to discuss your specific situation.

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3.  Gay Tax 

The UK's Civil Partnerships Bill proposes to make changes to UK tax rules for gay couples. However, under the present rules, gay men and women still face tax discrimination.

The Issues

• Same-sex couples are not recognised by Inheritance Tax Rules
• Same-sex couples are not recognised by Capital Gains Tax Rules
• On death the deceased's estate will have to pay full inheritance tax
• Married heterosexual couples are exempt from these taxes
  

Tax Discrimination

If you or your partner dies, leaving all your assets to the survivor, tax at 40% will be charged on the value over £263,000 - Married couples would not have to pay a penny! 

If you do not make a will, your assets will not automatically go to your partner.

If you gift your partner assets, such as company shares, you may be liable to Capital Gains Tax - a married couple would be exempt.

Tax Discrimination - How we can help.

• We can conduct a thorough review of your affairs
• We will recommend ways of saving tax. 
• We can put life assurance policies under trust, so that they do not form part of your estate and are not charged to Inheritance Tax on your death.
• We also offer a full Tax Self Assessment service.

Call us now freephone on 0800 074 6918

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4.  Gay Pensions 

The Issues

The UK's Civil Partnerships Bill proposes to make changes to UK pension rules for gay couples. Under the present rules, gay men and women face pension discrimination:

Many occupational pension schemes do not, as yet, recognize same-sex or unmarried couples.

Even if you clearly state to your pension provider that you want the benefits to go to your partner, your wishes may not always be adhered to.

You may have a paid-up pension that would die with you before or after your retirement.

Gay Pension Discrimination

If you have such a pension, your partner could be left with NO entitlement to your pension benefits on your death either pre or post retirement.

Even if you have completed an Expression of Wishes form (otherwise known as Nomination of Beneficiary form), and stated that on your death your pension benefits should go to your partner, the pension provider may IGNORE your wishes. A long and costly legal battle may then ensue.

Gay Pension Discrimination - How we can help.

If you already have a pension, contact us to see how effective it is for your lifestyle.

If you are thinking of taking out a pension, contact us before you do for advise on pitfalls.

Call us now freephone on 0800 074 6918

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Please Note:

The information on this page is based on that provided by www.gayfinance.info - independent financial advisers serving the UK 's gay and lesbian community for over 10 years.   Gayfinance.info do not offer debt or insolvency advice but are specialists in providing personal financial advice on life insurance, pensions, investments and tax.

For further information visit the www.gayfinance.info website or call on 08000 1960 69.