Life insurance is about protecting loved ones from the impact of an untimely demise. It is a financial product that can provide peace of mind in difficult times of loss and grief. And no one can ever feel the sorrow and consequences of a loss of someone more than the legal spouse or partner.
For people who have same-sex / LGBTQ partners, is it possible to declare them as beneficiary?
The answer is yes, according to the Insurance Commission.
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Same-sex or LGBTQ partners as beneficiary
Previously, people wanting to designate a non-relative as a beneficiary of a life insurance policy faced a few hurdles. There are occasions that life insurance companies ask that the beneficiary must have an “insurable interest” on the person securing their own life.
So many were unable to name their same-sex or LGTBQ (lesbian, gay, transgender, bisexual, and queer) partners as beneficiary. This led some people to question the rules on assigning beneficiaries.
The said question was raised by Professor E. (Leo) D. Battad of University of College of Law Gender Law and Policy Program. On March 4, 2020, the Insurance Commission issued the following response:
“… an individual who has secured a life insurance policy on his or her own life may designate any person as beneficiary provided that such designation does not fall under the enumerations provided in Article 739 of the Civil Code, without prejudice to the application of Section 12 of the Amended Insurance Code.”
Insurance Commission, Insured’s Right to Designate Beneficiary
Exceptions
Anyone who buy insurance to secure their own life are free to name any beneficiary. The Commission clarified that such could be deduced from
Section 11 of the Amended Insurance Code (Republic Act No. 10607), thus, “The insured shall have the right to change the beneficiary he designated in the policy, unless he has expressly waived this right in said policy.”
However, exemptions in selecting beneficiary are outlined by the Amended Insurance Code and the Civil Code of the Philippines. In Section 12 of RA 10607, a beneficiary responsible for the death of the insured as “principal, accomplice, or accessory” will forfeit their claim to the death benefit.
Moreover, any matter not explicitly spelled out by insurance laws are covered by the Civil Code of the Philippines.
In Article 2012 of the said law, “Any person who is forbidden from receiving any donation under Article 739 cannot be named beneficiary of a life insurance policy by the person who cannot make any donation to him, according to the said article.”
Article 739 of the said law mentioned the following whose donations shall be void:
(1) Those made between persons who were guilty of adultery or concubinage at the time of the donation;
(2) Those made between persons found guilty of the same criminal offence, in consideration thereof;
(3) Those made to a public officer or his wife, descendants and ascendants, by reason of his office.
Insurable interest
On the question of insurable interest, the Commission stated that “…insofar as life insurance is concerned, it suffices that the person securing the life insurance policy has an insurable interest in the life being insured.”
The provision of the law cited was Section 10 of the Amended Insurance Code, “Every person has an insurable interest in the life and health: (a) Of himself, of his spouse and of his children…”
Revocable or irrevocable beneficiary for same-sex partner?
One other decision to make is whether to name your partner as revocable or irrevocable beneficiary.
A revocable beneficiary can be added or removed from the policy any time. The downside is that that the said beneficiary is going to pay taxes when the death benefit is issued.
An irrevocable beneficiary, on the other hand, will not pay any taxes. Yet any changes to the policy, including adding or removing beneficiaries, cannot be made unless consent is given by the said irrevocable beneficiary.
And when there are no changes of beneficiary made during the lifetime of the insured, then the beneficiary is considered irrevocable. This is contained in Section 11 of Republic Act No. 10607.
“Section 11. The insured shall have the right to change the beneficiary he designated in the policy, unless he has expressly waived this right in said policy. Notwithstanding the foregoing, in the event the insured does not change the beneficiary during his lifetime, the designation shall be deemed irrevocable.”
Amended Insurance Code, Republic Act No. 10607
There are pros and cons between revocable and irrevocable beneficiaries. It is ultimately your decision what sort of designation you will choose for your same-sex partner.
Filing for same-sex partners as beneficiary
Insurance companies in the Philippines can have different requirements before approving a policy with same-sex beneficiaries.
These are some of the files that insurers may require. Ask the insurer for their specific requirements.
- If married, a marriage certificate
- If not married, any of the following may be asked:
- Certificate of No Marriage Record (CENOMAR)
- Proof of living together (i.e. residing in the same address or having the same billing address)
- Affidavit of Domestic Partnership / Affidavit of Cohabitation
- Joint bank account
- Proof of joint ownership of property
- Proof of business partnership
- A number of insurers or insurance products may require or prefer the designation of family members along with same-sex partner.
- Some policies may allow same-sex partners as contingent or secondary beneficiary.
What follows next is a summary of statements or guidelines of a number of insurers with respect to same-sex partners as beneficiaries.
AIA Philippines
AIA Philippines put out a statement “…our LGBTQ+ customers can protect their loved ones through AIA Philippines’ innovative offerings.” If not married, same-sex beneficiary must be declared with family members. Proofs are requested to establish the relationship for policies with sole same-sex beneficiary.
FPG Insurance
FPG Insurance offers Orange Circle, an accident insurance that can be purchased online for women including transgender women.
FWD Life Philippines
FWD Life Philippines posted on Facebook stating, “We take pride in recognizing and supporting the LGBTQ community’s right to designate their partner as an insurance beneficiary.”
GCash Partners
Insurers with insurance products available on GCash allow same-sex beneficiary designation included FPG Insurance, Singlife, Sun Life, and Generali.
Manulife Philippines
On June 27, 2022, Manulife Philippines issued a statement, “We believe in giving everyone the ability to provide for their loved ones and make every day better for the people who matter to them most. LGBTQ+ domestic partners can be designated as beneficiaries of Manulife insurance plans.”
Philippine AXA Life Insurance Corporation
On June 27, 2020, AXA Philippines posted on Twitter, “We are happy to let you know that you can apply your partner as a beneficiary, given that the policy owner and insured are the same person. Another requirement is that the beneficiary is not prohibited by law to receive donation from… the policyholder. We do not discriminate against orientation and what we look at is the fulfillment of the required eligibility.”
PRU Life UK
PRU Life UK offers PRUHealth FamLove, a customizable term life insurance policy. It is a one-year term plan that is renewable and provides death benefit and critical illness benefit.
It comes with following options: mySelf (insured only), myPartner (insured and spouse or life partner including common-law and same-sex partner), myChild (insured and children), myFamily (insured, spouse or life partner, children), and myParent (insured and parents).
Sun Life of Canada (Philippines), Inc.
In an article, Sun Life of Canada allows same-sex beneficiary: “If you have a partner, they have a right to be your insurance beneficiary. Sun Life fully supports this. Whatever product you may want to avail to build your wealth and reach your dreams, Sun Life can be your partner to be with you on your financial journey and help you secure a brighter future.”