When I was young, single and fit as a fiddle I got life insurance. By all accounts I didn’t need life insurance. I wanted it to leave a legacy, as my plans of being a pop diva never fully materialized.
I have three nieces. If I passed away, I had nothing to leave to them or anyone. In an instant, poof, there would be nothing left of me. An inheritance to my nieces to pay for college, buy their first home or travel the world (my choice) would be a great legacy.
We often think of life insurance when we start families. The risk of leaving a spouse and children to fend for themselves is a noble concern. However, today’s life insurance does more, even if yours isn’t the typical family.
Protect Your Family
Many queer people getting married now are above the average age of our straight peers for first marriages and because having children for same-sex couples is never a surprise, it can take years to start families. If queer people wait to buy life insurance, we could lose the financial benefits of purchasing less expensive life insurance when we’re younger.
Protect Against Creditors
Debts don’t disappear when we do. Depending on the type of debt you have and your financial situation, your loved ones may have to repay your loans. Don’t expose them to this nightmare. Consider getting life insurance to pay off your debts after you pass.
Leave an Inheritance
If there are one or more people you’d like to leave a parting gift to, life insurance can fund an inheritance. In addition to family members, you can leave an inheritance to any relation such as friends, former partners and foster children.
You may leave this inheritance as a gift for the recipient to spend as they wish or outline provisions on how this inheritance should be used. If Leona Helmsley can leave $2 million to her dog for grooming, maintenance and security, you know the restrictions can be plentiful – and fun.
Give to Charity
You may leave donations to charities, as outlined by your trust, when you’ve passed to ensure those organizations continue. Assign a trustee to your estate to oversee that your donations are distributed appropriately and not a la Evita.
Medical Care
Healthcare can take as much as 30% of one’s retirement savings. Those in the queer community who haven’t saved appropriately need alternatives.
Life insurance can include provisions, such as an accelerated death benefit, that allow for tax-free payments to cover medical care in certain “critical” circumstances. This prevents you from leaving your family with hospital expenses after you pass.
Protect Your Business
If you want to ensure your business continues after you do, list your business or business partner(s) as beneficiaries on your life insurance, especially if your business or business partner(s) rely heavily on you.
The most memorable shows end with great encores. Make yours one.
