Love between LGBTQ+ couples is no different from any other, but the legal tools supporting how they provide for each other are still developing. Planning therefore has to be one step more deliberate than for other couples. This article is a practical guide, building on our article on planning insurance as a couple, focused on the steps LGBTQ+ couples can genuinely use today.
The starting point: understanding "insurable interest," because it is the heart of this
The principle of life insurance is that a beneficiary should have an insurable interest in the insured's life — financial interdependence, for example. The traditional system ties that interest to blood relationship and marriage registration, so couples whose registration is not yet recognised must demonstrate their financial bond with evidence instead. The good news is that many companies' practices have been opening up steadily as the law and society change [check the latest information]. Our job is to have the evidence ready and to choose a company with a clear approach.
Step 1: build a shared financial trail, starting today
Evidence that helps confirm a partner's insurable interest includes: a joint bank account; jointly borrowing or paying for assets (a house, a condominium, a car); being registered at the same address; naming each other as beneficiary in a provident fund or workplace benefit (where the organisation allows); and documents showing a long shared life. The clearer and longer the trail, the smoother the assessment. Couples just starting to plan should begin building this evidence in parallel with researching plans.
Step 2: choose the company with direct questions, before choosing the plan
The most time-saving strategy is to let the beneficiary conditions be the first filter for choosing a company. Ask the agent directly: what is the company's practice on accepting a same-sex partner as beneficiary, what evidence is required, and have there been cases that went through? A clear answer with a list of documents means a company that is ready. A vague answer means move on. The time you have with someone you love is too valuable to spend on a system not ready to accept you.
Step 3: design the cover on the same principles as any couple
Once the door is open, the planning principles are the same as for any couple: life cover on each of you, proportionate to how much the other depends on it (shared expenses, shared debts, shared plans for the future); complete health and critical illness cover for both, because caring for each other through illness is a real obligation with no state spousal benefit behind it; and income replacement for whichever of you is self-employed. Every one of our articles on sums insured and checklists applies. The love is no different, so the formula is no different.
Step 4: close the gaps with a partner's document set
Insurance takes care of the sum insured, but other assets still follow inheritance law, which may not yet recognise your partner. The documents to prepare alongside are: a will, clearly specifying the handover of every asset; an advance directive on medical treatment as recognised by law, so that your partner has a role on the day you cannot decide for yourself [check the latest information]; and a document map, so each of you knows where the other's policies, accounts and important papers are kept. Those three, plus insurance, make a genuinely complete system for looking after each other.
As the law opens up, upgrade the plan with it
The legal landscape on equality for couples is moving forward. Whenever there is a significant change, come back and review the plan: the new rights available, adjusting beneficiary status, and any additional benefits. Our usual principle of "review at every major event" applies to society-level events too [check the latest information].
In short
LGBTQ+ couples can genuinely build security for each other today, in four steps: build a shared financial trail, choose a ready company with direct questions, set the cover using the standard formula, and finish with the partner's document set. Love that is well planned is love that can protect in any situation. If you would like to start planning for your couple, message us on LINE any time — every family is looked after here equally and in confidence.
This article was inspired by material from the Thai Financial Planners Association (TFPA) and has been entirely rewritten.