Life insurance policies are issued on the basis of insurable interest between the policy insured and the policy beneficiary. To establish insurable interest between two parties, you must demonstrate financial exposure or potential loss to the beneficiaries based on the death of the insured. Generally accepted parties are family members, business partners and charities who depend of the benevolence of the insured. If you can’t establish insurable interest and financially justify the amount of coverage, the policy will not be issued.
Yes, you can get life insurance on another person. It is not a requirement that life insurance be just taken out on yourself. As Steve said, you must have an insurable interest in the other person.
When you get life insurance on another person, you can be the owner, payer, and/or beneficiary of that policy. Usually, but not always, the people who pay the premium also want to own the policy, because the owner can change the beneficiary.
.JPG){kind=avatar}
When you get life insurance on another person, you can be the owner, payer, and/or beneficiary of that policy. Usually, but not always, the people who pay the premium also want to own the policy, because the owner can change the beneficiary.