Anyone can own their own life insurance policy, when they are the insured person in the policy. Sometimes people think that someone else should own their life insurance policy for tax purposes, when the possibility of their estate ever being large enough to incur estate taxes is nil, and life insurance does not incur income taxes.
But there are legitimate situations (for tax purposes and otherwise) where another person owning the policy is wise. To own the policy, that person must have a financial interest in the life of the insured person.
It is the owner of the policy who has the right to change the beneficiary. So be careful when choosing an owner.
Licensed Life Agent, Life and Finance/ 50 States, New York
Anyone can own a life insurance policy starting at ages 15 1/2. Depending on company insured ages are from age 0 to age 85. Policy owners can be the payor of the policy who buys the policy for another or can be the insured who buys the policy on self.
That is a great question! Anyone who is not a legal minor in your State can own a policy. The owner can be the insured, or they might not be. A parent can be the owner of a policy insuring a minor child, for example. In some cases, the adult child might be the owner of a policy insuring their elderly parent. An owner is often the insured. All there has to be is an insurable interest. Thank you for asking!
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But there are legitimate situations (for tax purposes and otherwise) where another person owning the policy is wise. To own the policy, that person must have a financial interest in the life of the insured person.
It is the owner of the policy who has the right to change the beneficiary. So be careful when choosing an owner.