Can I Purchase Life Insurance on Someone Else?

You may purchase life insurance on other people as long as you can prove that you have what is called an “Insurable Interest” on the person.

Insurable interest means that you personally know the individual and that you have a relationship with them, and that you either rely on that person for some form of financial support, or that you would suffer a financial loss if the person were to die.

Individuals you can legally take out life insurance policies on include your spouse or domestic partner, dependents and business partners, among others.

Generally, you must have the person’s permission to take out a life insurance policy on his or her life, although some states do allow an exception in the case of spouses and minor children.

However, the maximum amount of life insurance (in some states) that you may purchase on a minor child is $10,000 to cover burial expenses.

Learn more about who you can insure for life insurance

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