Affordable Life Insurance Protection for Your Family

Can I Take Out Life Insurance On Anyone?

If You are Considering the Purchase of a Life Insurance Policy You May be Wondering If You Can Insure Anyone?


You can't take out a life insurance policy on just anyone. You need to have the individual's permission (you can't get a policy on someone without them knowing they are being insured), and you must be able to show Insurable Interest, which is proof that you will suffer a financial loss or cost if they die.


The insurance company may require that the person you wish to insure for life insurance sign the application, verifying permission to insure the person.


What is Insurable Interest?


Insurable interest means the person who wishes to insure your life would experience a financial hardship or loss upon your death.


For Example: If someone relies on you for financial support, or someone would be responsible to pay for your final expenses (burial and funeral costs), that person would have an insurable interest in your life.


NOTE: Insurable interest must exist at the time the life insurance policy is purchased. However, for a life insurance policy, insurable interest is not required at the time of death of the insured person. 

Example: - A man may insure the life of the woman he is engaged to.


Can You Get Life Insurance on Anyone You Have an Insurable Interest In?


You can obtain life insurance on anyone with whom you have an insurable interest. There must be an insurable interest for you to take out life insurance on another person. One way to determine insurable interest is whether you rely on that person for some means of financial support.


Life Insurance Policy Insured

A life insurance policy is a contract between an insurance company and an individual. The insurance policy usually insures the person who bought it, but it can insure someone else as well, such as a child or a business partner. When the insured person dies, the policy pays out a predetermined amount of money (death benefit) to the policyholder’s beneficiary.


Who Can You Insure for Life Insurance?

Yes, you may be able to buy life insurance on a person who is not your child or spouse.

You can buy a life insurance policy on anyone with whom you have an Insurable Interest.

There must be an insurable interest for you to take out life insurance on another person.

One way to determine insurable interest is whether you rely on that person for financial support, or a living situation.

Each person has an Insurable Interest in his or her own life, and therefore can select anyone as a beneficiary.


Examples of Insurable Interest 

  • Family Members - Parent and child, husband and wife, brother and sister have an insurable interest in each other because of blood or marriage.
  • Business Relationships An employee may insure the life of an employer, and an employer may insure the life of an employee.
  • Creditor - Debtor relationships give rise to an insurable interest. The creditor can be the beneficiary for the amount of an outstanding loan.


To be certain you may take out life insurance on a specific person, you can e-mail the insurance company you want to get coverage through and ask them to verify in writing (by e-mail) that you can take out a life insurance policy on the person you are interested in insuring. 


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.


Highly Recommended – United of Omaha

United of Omaha offers guaranteed acceptance whole life insurance for people age 45 to 85. Choose $3,000 up to $25,000 of coverage. Rates start as low as $8.80 per month. There’s no medical exam and no health questions. You cannot be turned down. You can get a quote and apply online now. START HERE to get a FREE Quote.


Disclosure: Compensated Affiliate