Who Can I Take A Life Insurance Policy Out On?

You can take out a life insurance policy on anyone in whom you have an insurable interest.

An insurable interest would mean that you would be at a financial loss if the individual were do die. Either you rely on that person for some form of financial assistance, or you would suffer a financial loss if the person were to die.

If you cannot prove that you have an insurable interest in the person you want to insure at the time of the application, the life insurance company will not issue the policy (at least not with you as the beneficiary).

Insurable interest is only required at issue I (i.e. you can become the beneficiary of a life insurance policy after it is issued even if you do not have an insurable interest in the insured person).

There is insurable interest between spouses, parents and their children, siblings, relatives, and business partners, among others.

In addition to needing insurable interest in order to buy life insurance on another person, you may need the person’s permission, signature on the application, and the person may need to answer some health questions.

Many people decide to purchase life insurance for their parents in order to have money to pay for their parents funeral, burial and final expenses. Learn more about who can you insure for life insurance.

Who Can I Buy Life Insurance On?

You can buy a life insurance policy on someone with whom you have an “insurable interest”.

That means that there would be a financial loss to you if the person you want to insure were to die.

You can buy life insurance for your children, as long as it is of a reasonable amount of coverage.

And most life insurance companies will allow you to buy a small final expense policy for your parents.

In addition, you can buy life insurance on your spouse since you both have an insurable interest in one another. Learn more about who can you insure for life insurance?

Who can you insure for life insurance?

I want to buy life insurance for my parents but I’m not sure who I can actually insure for life insurance.

You can insure the life of others for life insurance, but you are required to have an insurable interest in the person you insure.

Insurable interest means you are some how related to the person, or you stand to lose financially if the person were to die. For instance, maybe you rely on the person for some means of financial support.

Examples of people with insurable interest in one another are spouses, parents and their children, siblings, business partners, relatives, etc.

In addition, in order to buy life insurance on another person you would need their consent, permission, their signature on the application, and the person may need to answer some health questions or even take a physical exam when you apply for the life insurance.

However, it is possible for you to buy life insurance on another person.

Here is an article that explains how it works in more detail – Who can you insure for life insurance?