Back in January 2011, Illinois Governor Quinn signed a bill that allows domestic partners, same or opposite genders, to be allowed to have equal partnership as marriages do, on a state level. This law went into effect June 1st, 2011. What does this all mean?
Insurance companies in the state of Illinois are now taking applications for coverage with domestic partnership. Talking health insurance specifically, this will allow a small premium reduction. There is a 'hard cost' of insurance that everyone pays based on certain demographics. Now that 'hard cost' is divided among two adults versus just having one. This savings can be a little as $10 or $20 per month but it can add up over time. If you are self-employed or an employee and pay for your own benefits this may mean you have to go through underwriting again. At that point, is it worth $100-200 (possibility more) per year in savings? That depends on the individual and their circumstances.
If you are on an employer sponsored plan you can add your civil union spouse during open enrollment or during the 30 days "special enrollment" after the start of the new law, or when your civil union spouse loses their coverage.
There could be tax consequences involving Civil Union spouses on a federal level. This is because Civil Unions are not recognized on the federal level. Be sure to check the details of the law and check with your tax advisor.
This could be good news for some. There are many people that feel 'stuck' because they couldn't get health insurance coverage without being married to their significant other. An opportunity for someone else to have health insurance is always good. If there are any premium savings along with it, well, that's a plus.
Health insurance is not the only insurance program Civil Union partnerships can take advantage of. Auto, homeowners, life insurance and annuities are just some to name a few. Life insurance is a big one because insurance companies look at 'insurable interests' for beneficiaries. Many life insurance carriers have been allowing some applications to pass with domestic partners as beneficiary. Now this law opens up the door.
This may be the time to review your insurance with your trusted insurance advisor to make sure you have the most amount of coverage for the same price or less. Make sure you are getting the most out of your insurance.
Butch Zemar
www.EliteBenefits.net