Cut me to the bone
With your razor blade smile
I watched you playing pool
It’s all around the school that I love you
- Elton John
Loaded with emotions, this famous lyric beautifully captures a teenage boy’s crush on another boy. A lot has been spoken about same-sex love and movements launched across continents demanding social and legal rights for the LGBTQ community globally.
While the community’s social and legal rights are yet to crystalise completely, ensuring financial security continues to elude them. And India is no exception. While many are basking in the glory of the Section 377 judgment, at the same time a substantial percentage of the LGBTQ populace in the country is grappling to secure their partners financially. Sadly, financial instruments in India are not in place that can help the community lead a better and an economically secured life.
The Supreme Court in September 2018 decriminalised consensual sexual relations between homosexual adults. While it was a huge triumph for the LGBTQ community in India, they are yet to get their relationships accepted legally. Indian homosexuals still cannot legally marry thus giving rise to a lot of complications. Topping the chart is financial security and inheritance problems. Till date, a LGBTQ person has to go through a lot before opening a joint bank account along with his or her partner. They cannot even opt for floater insurance health policy as family and the list is never ending. “Financial security of LGBTQ people are being discussed at various levels in India, something should happen sooner or later. It will be possible if we have an anti-discrimination law. In a democracy we all should have equal rights,” said Anjali Gopalan, Founder, Naz Foundation.
Plights of LGBTQ people are plenty. Unless one bequeaths his or her property to the partner legally, often relatives try to shun them. According to LGBTQ activists, there is always a question on property inheritance. Till the person is alive it is a different scene, but after his demise there is no assurance that his or her partner will automatically inherit his property and wealth.
Renu Maheshwari, CEO and principal advisor, Finscholarz Wealth Managers said, “Any two individuals can open a joint bank account. The spousal relationship may not be valid though, because of the lack of ‘legal recognition to homosexual marriage’ in India.” Though LGBTQ couples cannot buy a floater health policy as it requires proof of family status, but they can purchase individual health insurance policies. They cannot even nominate each other in life insurance policies. “There needs to be insurable interest and usually proof of family status is required for that. Group insurance policies from employer can provide these benefits though,” Maheshwari further added.
Shweta Jain, certified financial planner and Founder, Investography suggested that LGBTQ people should have more monetary savings, as they cannot take much insurance cover. “They need to save better and build up emergency funds since they cannot avail benefits like life insurance,” she said.
However, LGBTQ people have their own stories to narrate. Transgenders feel lesbians, gays and bisexuals are better off financially than them because their sexual orientation cannot be identified apparently from their physical appearance and they receive better education followed by good jobs. “No insurance company has ever approached me. I really do not know what plans they have for us,” said Rudrani Chettri, 41, Founder of India’s first transgender modeling service, Bold Trans Modelling Agency. Chettri also said though the corporate world promises jobs to transgenders as part of their CSR projects, but it is mere tokenism. “Even a transgender with proper academic background is often offered housekeeping jobs,” she rued.
So, in a world with virtually no financial net, how can they secure their lives?
Making a Will is one option. “Self-earned wealth can be willed away as desired by the owner. Same sex couples can also do the same. We recommend they do this with the help of expert estate lawyers to avoid any litigation with biological families after the demise of one partner,” Maheshwari said. She further said it is a long way to go before the LGBTQ community is able to acquire equality in all spheres of life, including financial rights.
LGBTQ couples may face discrimination in inheritance if parents do not approve of their choices. Same sex marriage is not legal in India and hence transmission of wealth through regular matrimonial rights is not feasible. In case of employment opportunities, although the law is not against the community anymore, they continue to face discrimination.
Very few corporates offer financial benefits to such people. For example, IBM extends its medical insurance policy to cover partners of its queer employees.Maheshwari suggested, investing, though comes with no discrimination based on gender, race or sexual preferences, it is the best for LGBTQ couples to secure themselves and their future. Although the law may not be in their favour, a customised financial planning and investments solutions can protect them against the risks arising due to their different legal and social status.
This can be achieved by addressing the three major facets of finance: contain and manage financial risks; focus on wealth creation and financial freedom and ensure proper transmission of wealth. Even better if both partners work towards financial independence and focus on wealth creation right from the very beginning.
Life is tough when chosen to tread the unusual track. With decriminalisation of homosexuality, Indian LGBTQ are hoping that homosexual marriages would get accepted soon.
But, till we raise a toast at such weddings, the community must brace themselves and start investing cautiously to lead a more contented life.
Shielding Sappho’s Cohorts
Financial security continues to remain a tussle
Consider these two examples.
Once a leading Bollywood music director who made music at the blink of an eye is now old, feeble and surviving on the goodwill of friends who generously send cash every month. Interestingly, this was the man who helped everyone he met, threw amazing parties full of Mumbai’s mutterati, (as I call the chattering chums of the gay world) and never shirked in giving a leg up (what a phrase) to any newcomer in Bollywood.
In another part of Mumbai’s posh western suburbs, lives an old rich man. One of the first IT wizards, now lies in his own piss with crore in his bank; avoided by his friends and family. This was the same person who was once a popular face at Mumbai’s Page 3 parties; spotted every time either enjoying a mujra or reveling with boy cabarets and often mimicking the likes of Meena Kumari and Indira Gandhi.
Apart from drunken revelries, a common string that binds them together is the fact that they are are gay and refrained from marrying women just to lead a bogus double life in a cloistered society like India. Now, in their sunset years, both are struggling to make ends meet. There are several others like them trying to find a place under the sun? But what can be done to ensure that even LGBTQ people get to lead a safe and secured life?
Besides the financial stakes involved, what is needed was not just a judicious savings plan, which would make money work for you but clear maps of what happens to us when we are old and uncoupled to boot. One option we explored was to convert our homes into hubs for older people whom we would mutually help to lead a decent lifestyle. One such effort comprised three gay men in one household accompanied by music, conversations and a decent fare (mung-khichri, yogurt and some wine). But it was too bourgeoisie!
The fact is, however small or big your nest egg is, you are always in danger from elements that prey on the weak. One wealth manager we spoke to had no idea of how and why single gay old men needed to save capital especially in their old age. Many old gay men were still working in order to remain active and also to keep wolves away. But let me come to the money question. Though tools like PPF and FDs were mentioned, mutual debt funds with 80 per cent in government bonds and gilt edge corporate FDs seemed to be popular.
Though equity in corporates is something every senior citizen would like to hold, its three-year timeline discouraged several senior citizens within the community. A mutual fund that could be withdrawn within 48 hours was the choice of nearly everyone. Interestingly, real estate was out of radar for majority while NPS failed to strike a chord. PPFs that are about to mature must be salted away in mutual funds that can be withdrawn. Medicare must be carefully renewed as above 70, nobody even bothers to even insure you. In fact, two leading insurance companies we approached, refused to even entertain us!
In other words, safety and liquidity during old age were the priority.
However, several LGBTQ people feel they needed younger men to look after older ones and help them grow with dignity.
The author is the Chairperson at Humsafar Trust and Convenor, Mumbai Seenagers