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

 

 

Can Anyone Take Out A Life Insurance Policy On Me?

No, not everyone can take out life insurance on you.

They need an “Insurable Interest” in you in order to buy life insurance on you.

Insurable interest basically means that a person relies on you for some means of financial support, or the person would suffer financially if you were to die.

Insurable interest does exist between spouses, parents and their children, siblings, relatives, and business partners, among others.

Also, in order to buy life insurance on another person you may need their permission, signature on the application, and they may need to answer some health questions.

Learn more about who you can insure for life insurance.

Can You Get Life Insurance On Anyone?

Typically to purchase life insurance on someone else there must be an insurable interest that exists between you and the person you want to insure for life insurance.

Insurable interest is the presence of some potential financial loss which the owner or beneficiary of the life insurance policy will suffer upon the insured person’s death.

That means either you rely on the person for financial support, or you may suffer financially if the person were to die.

Those who are connected by ties of marriage or blood are considered to have an insurable interest in each other if the death of the insured would mean financial loss, either of income or because of estate settlement needs.

Insurable interest may exist between spouses, parents and their kids, relatives, business partners, etc.

Learn more about who you can insure for life insurance.