This June, as the world celebrates Pride Month, companies, communities, and the law continue to chip away at prejudices based on gender and sexual orientation. There is one aspect of life that has always remained important to all regardless of how one identifies oneself. How you plan your finances can make the difference between dreaming of financial independence and realising it.

Once you have decided to take charge of your finances, we recommend choosing the right financial advisor to give you the right advice based on your age, life stage and aspirations. Yes, just as your personal health requires professional help, your money too needs expert help to maintain good health and grow.

The law has still some catching up to do when it comes to the LGBTQ+ community. Therefore, it is important to ensure that the law is on your side especially when it comes to passing on your wealth to your partner or a member of your family. Remember, it is better to ask questions early to gain clarity than go by wrong assumptions and regret later.

How to choose the right Financial Advisor

1. Look for certified experts who do not have any bias for or against any legitimate financial product. Their only interest ought to be in recommending what would work best for you.
2. Ask questions to understand how well-informed they are and, more importantly, how well they understand you.
3. They should be able to offer you multiple investment options and walk you through each.
4. They should have a team and efficient processes in place to help you with the investment process and the documentation. They should keep an eye on the finance market and advise you well in time if changes must made in your portfolio.

Opening a bank account 

1. The Reserve Bank of India allows any individual to open an account and operate it singly or jointly, provided all the supporting documents are in place.
2. However, some banks still refuse to open accounts for same-sex couples. Pick an efficient, technologically-sound bank that is non-biased towards LGBTQ+ members.
3. Ask your financial advisor for help.

Life insurance policy

1. The same conditions apply to everyone who wants to purchase a life insurance policy.
2. Make sure you understand all details of the policy. It must meet your needs.
3. India has not yet legalised same-sex marriage. Without a valid proof of marriage, members of the LGBTQ+ community will not be able to name their partner as the policy beneficiary.

Health insurance policy

1. Understand the insurer’s claim process, exclusions, and hospital network. This will make it easier for you to raise a claim successfully if and when required.
2. Health requirements and risks may vary from one individual to another. Make sure your insurance adequately covers your needs—could include hormone therapy, sex reassignment surgery (after which you can change your gender legally), mental wellbeing and other aspects.
3. Some insurance policies do provide additional benefits to LGBTQ+ members. However, there may be a relatively longer waiting period of up to three years before you can claim the benefits.
4. When same-sex couples adopt a child, they can include the child as a beneficiary under the family floater plan. Do check if your policy allows this and other important aspects of your life goals.
5. Once again, your financial advisor would be the best person to help you here.

Loans

1. Couples who wish to apply for a joint home loan must submit the standard KYC (Know Your Customer) documents, including a marriage certificate. India’s current legal stand does not recognise same-sex marriage. Therefore, as of now, without a valid marriage certificate, LGBTQ+ couples cannot apply for a home loan together.
2. However, the partners can stand as guarantors for each other.
3. Let your financial advisor guide you and help you realise your dream of a home.

Mutual Funds 

1. Your advisor will help you choose the right mutual funds to suit your needs.
2. LGBTQ+ members can invest in joint holdings and take advantage of the fund’s either-or-survivor clause.
3. According to mutual fund nomination rules, any person, minor, non-resident Indian, or charitable trust can be a nominee. So, the partner can be a nominee.

Inheritance

1. Inheritance is not exactly a financial product. Nevertheless, it can be the route for one to leave wealth to another person or institution after one’s passing.
2. Traditionally, inheritance passes on to those who are bona fide successors. In India, as same-sex marriages are not yet legal, the best option would be to prepare a will and register it to pass on the assets, possibly to one’s same-sex partner.
3. Again, the financial advisor would be the best guide in drawing up a will. Of course, wills can be challenged. So, financial investments could be an alternative or additional option to provide for a loved one.

The struggle for equal rights and recognition by the LGBTQ+ community will continue all over the world. Once can only hope that love would unite us all despite all our differences.

Meanwhile money cannot wait because we have dreams to pursue. All it takes is prudent planning with some expert help.