What is Insurable Interest in a Life Policy?

Insurable Interest is required in order for someone to buy a life insurance policy on someone else.

It means you have a financial interest in that person and if the person should die, you would lose out financially.

For example, either you rely on the person for some means of financial support, or if the person should die, you would suffer a financial cost; such as, having to pay for the person’s final expenses.

Insurable Interest usually exists between spouses, parents and their children, and business partners, among others.

Learn more about insurable interest for life insurance and how it works.

Can I Buy Life Insurance on Someone Else?

Is it possible for me to buy a life insurance policy on another person?

Yes, if you have an insurable interest in someone else, you may buy life insurance on that person. However, you may or may not need their permission.

Insurable interest means you either rely on the person for some form of financial support, or that you would suffer some financial loss if the person were to die.

That means, you may buy life insurance on your spouse or domestic partner, on your kids, on your family members, or your business partners, among others.

For example, many adult children purchase life insurance plans on their elderly parents to help pay for final expenses including the cost of a funeral and burial for their parents.

Learn more about who you can insure for life insurance

 

 

Life Insurance on Fiance?

Can I put life insurance on my fiancé of 5 year even though he still has a life insurance policy with his ex wife? 

We have been living together for more than 5 years.

Yes, you can buy life insurance on your fiancé.

If you have an Insurable Interest in someone you can buy life insurance on that person.

However, you will need his permission / consent, he may need to sign the application for life insurance, and he may have to answer some health questions, and/or take a medical exam for the life insurance.

Insurable interest in a person you want to insure for life insurance is required by the insurance company.

Basically, an insurable interest in someone means you rely on that person for some form of financial support, or you stand to lose financially if the person were to die.

Insurable interest exists between spouses, parents and their children, siblings, relatives, business partners, fiancés, etc.

Here is an article that explains more about Who can you insure for life insurance?