Affordable Life Insurance Protection for Your Family

Can I Buy Life Insurance for Myself?

Yes, you can buy life insurance on yourself. This is the most common way life insurance is purchased.

But, you don’t actually buy the coverage for yourself, you are the insured person, but the coverage provides a death benefit for someone else, for example, your spouse or child.

In order to purchase life insurance on someone you must have an insurable interest in that person. 

You always have an insurable interest in yourself, and can therefore buy life insurance on your own life.

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What is Insurable Interest?

Insurable Interest: Each individual has an unlimited insurable interest in his or her own life, and therefore can select anyone as a beneficiary.

 

What is a Beneficiary?

When you purchase a life insurance policy you’ll need to select a person (or persons) who will receive the proceeds from your policy upon your passing. The person(s) you choose are referred to as the beneficiary of your insurance.

 

Beneficiary: Designation by the owner of a life insurance policy indicating to whom the proceeds are to be paid upon the insured’s death. Anyone can be named a beneficiary (relative, non-relative, pet, charity, corporation, trustee, partnership). 

 

primary beneficiary is the first-named beneficiary, who must survive the death of the insured in order to collect the proceeds.  

contingent or secondary beneficiary will receive the proceeds if the primary beneficiary does not survive the insured.  

revocable beneficiary (primary or secondary) can be changed by the policy owner at any time. 

An irrevocable beneficiary (primary or secondary) can be changed by the policy owner only with the written permission of that beneficiary.  

 

Reasons to Buy Life Insurance for Yourself


Some of the most common reasons people buy life insurance include the following:

  • Replace Income for Family Members
  • Pay Off Mortgage Loan
  • Pay Off Credit Card Debt
  • Pay for Final Expenses including Funeral and Burial Cost
  • Pay for Child or Grandchild’s College Education
  • Provide for Living Expenses for Family
  • Provide for Spouse’s Retirement
  • Provide Funds to Pay Estate Taxes
  • Provide for a Charity

 

Naming a Beneficiary of a Life Insurance Policy

 

Many people buy life insurance on their own life and name one of the following as beneficiary:

  • Spouse
  • Parent
  • Sibling
  • Child
  • Relative
  • Life Partner
  • Business Partner
  • Charity
  • Religious Organization

 

Buying Life Insurance for Yourself

 

You can purchase life insurance on yourself. 

There are several types of life insurance policies you may consider. 

 

Types of Life Insurance – Term or Whole Life


Whole Life, Term or a combination of the two. The younger you are when you purchase coverage, the more you can buy at an affordable price.  

You can purchase life insurance and name whomever you want as the beneficiary. 

As for the cost of your life insurance policy, it depends on your health and what type and amount of life insurance you want. 

 

Term Life Insurance 

You can buy term life insurance which is coverage for a specific term and that is all you get. Term life is the cheapest type of life insurance policy you can buy. 

 

Benefits of Term Insurance 

  • Cost – Lowest priced life insurance available.
  • Flexible – Choose coverage lasting for a duration of 10, 15, 20 or 30 years.
  • Fixed Rates – You pay the same premium each year for the duration of your policy term.

 

Whole Life Insurance 

You can also purchase some type of whole life insurance which will be more expensive but will include an investment feature in addition to the insurance coverage. Whole life provides you with protection that lasts your entire lifetime. 

 

Benefits of Whole Life Insurance

  • Lifetime Protection – Your whole life policy provides coverage lasting for your entire life.
  • Cash Value – Your insurance may build up cash value inside your policy over time.
  • Loans – You may take a loan from the cash value in your policy.


Buying Life Insurance on Others

 

Although you can purchase a policy on yourself, you cannot purchase life insurance on your parents (or anyone else except your minor child) without the insured party's consent. 

So, to buy life insurance on someone else, other than yourself, you need that person’s permission, and the insurer may require the person’s signature on the application for life insurance.

 

Life Insurance Quotes

 

Top Pick – JRC Insurance Group

JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.

 

Resources:


Who Can You Insure for Life Insurance?

Buy Term Life Insurance with No Exam

Can I Buy Life Insurance for Myself?

 


Disclosure: Compensated Affiliate