Can You Buy Life insurance on Anyone?


Is it possible to buy a life insurance policy on anyone?

No, you can't just go and buy life insurance on any person you want.

Life insurance companies require that there be an "Insurable Interest" between the person to be insured and the person buying the life insurance policy.

This is to make sure that people don’t just go out and buy life insurance on people that are dying and they have no connection with; such as, a homeless person or someone you work with or know but don’t have an insurable interest in.


What is an Insurable Interest?

It means you rely on someone else for financial support, or you stand to lose financially if another person were to die.

There does exist an insurable interest between spouses, siblings, parents and their children, relatives, business partners, etc.

 

How can you buy life insurance on another person?

Besides having an insurable interest in the person, you would need the following:

1.     The person’s permission/consent/approval.

2.     The person’s signature on the application for life insurance.

3.     The person may have to answer some health questions.

4.     There may be a physical exam required of the person.

 

Any physical exam required by the insurer is paid for by the life insurance company.

If you buy life insurance on another person, you would be the owner of the life insurance policy, and responsible for the premium payments.

In addition, you would want to name yourself as the beneficiary of the life insurance policy. That way, if the insured person were to die, you would receive the proceeds from the life insurance – this is called the “death benefit”.

Usually, death benefits from a life insurance policy are paid directly to the beneficiary, free from any federal income tax.

 

Life Insurance Quotes

 

Top Pick – Wholesale Insurance

Wholesale Insurance lets you shop, compare and save on life insurance. For more than 30 years, Wholesale Insurance has helped more than 500,000 American families protect their futures. Compare the best life insurance rates from 40 top carriers with just one click! Save up to 73%. Request your free quotes for life insurance.


Highly Recommended – Haven Life

  • Get up to $1,000,000 of affordable term life insurance today
  • Apply online in under 20 minutes, start coverage today
  • Backed by MassMutual, rated A++ by AM Best

 

Haven Life uses the information provided in your application to make an instant decision on your application. Healthy, qualified applicants (based on the information provided in your life insurance application) can be insured immediately with no medical exam while other applicants can receive immediate coverage pending a medical exam.


Highly Recommended – Globe Life Insurance

$1* Buys $100,000 Globe Life Insurance

  • Coverage for Adults or Children
  • No Medical Exam. Just a Few Y/N Health Questions
  • Free Information. No Phone Required. No Waiting

Buy Direct. Monthly Rates as low as $3.49 for Adults/$2.17 for Children.



Term Life Insurance | About Us | Privacy Policy | Site Map

Can You Buy Life Insurance on Anyone

 


Disclosure: Compensated Affiliate