Life insurance can be a valuable financial planning tool for a variety of individuals and their families. Many LGBTQ+ families can benefit from having life insurance, as it provides financial security and peace of mind in the event of a family member’s death. No matter how you identify, your gender identity and sexual orientation shouldn’t prevent you from finding the life insurance coverage you need.
By exploring different policies and providers, understanding the legal landscape and seeking guidance from knowledgeable professionals, LGBTQ+ families can approach the process of purchasing life insurance with confidence. In this article, we’ll help you understand why life insurance is important for LGBTQ+ families, how it can help protect their loved ones and how the process of obtaining life insurance works.
How should LGBTQ+ families approach purchasing life insurance?
If you’re a member of the LGBTQ+ community and you’re interested in finding life insurance, you can apply for the same life insurance policies as other individuals, regardless of your gender identity or sexual orientation. This includes term life insurance, which offers coverage for a predetermined term length, and permanent life insurance, which is meant to last your entire lifetime.
If your LGBTQ+ identity aligns with your assigned sex at birth, you typically won’t encounter any additional steps when applying for life insurance coverage. However, if your gender identity does not correspond with your assigned sex at birth, such as nonbinary, transgender or genderqueer, the process may require additional documentation and time. Talking with an experienced life insurance agent or broker like SelectQuote can help you understand the complexities of this process while matching you with a policy that works best for you. Understanding what to expect can make this a faster and easier process to navigate. For example, carriers may ask you to provide these documents when you apply:
Any applicable surgery records
A note from your therapist
A modified birth certificate
Naming a Beneficiary as a Member of the LGBTQ+ Community
By naming a beneficiary, LGBTQ+ individuals can ensure that their chosen person or people will receive the financial support they need in the event of their passing. This can be especially important for non-traditional families where legal recognition and protections may be lacking. Regardless of whether you’re married, in a civil union or a domestic partnership, you’re able to name your partner as your life insurance beneficiary. Insurance companies cannot prohibit you from listing a beneficiary because of sexual orientation or gender identity. However, they may ask you to provide documentation that shows how your beneficiary will be financially affected if you pass away unexpectedly. This is to demonstrate insurable interest, which is required for all life insurance applicants, regardless of sexual orientation or gender identity.
SelectQuote Can Help Your LGBTQ+ Family Shop Find Life Insurance Coverage
No matter your age or family structure, life insurance is a valuable financial tool that can help keep your loved ones protected. With a variety of options and considerations, especially as a member of the LGBTQ+ community, finding the right policy can feel overwhelming. Let SelectQuote do the heavy lifting for you. We have almost 40 years of experience in the industry and our licensed agents will help you compare your options in minutes, making it easy to review carriers and rates so you find the best choice for your unique family and needs.
