Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Yes. You can buy life insurance on another person when several factors are met:
1) They agree to allow you to take out a life insurance policy on their life
2) There is an insurable interest for the coverage - (e.g. buying coverage on a family member or setting up a key-man or buy-sell agreement between business partners)
3) The policy being applied for is suitable to the need - there are limits to how much coverage can be taken out a person (generally 20-30x income - exact maximum coverage allowance varies by carrier)
You certainly may purchase life insurance on another person. However, there must be an insurable interest. This means the loss of their life would impact you financially. Typically some examples would be an immediate family member, close relative or caretaker, a business partner or a key employee. Keep in mind the person must agree to being insured, be healthy enough to pass through underwriting requirements and the amount purchased must make financial sense.
Recruiter/Manager, Cole Insurance Investments, Charlotte N.C.
Yes you can buy life insurance on another person this is commonly done when two individuals are in business together or an employee has a major roll in your business that would possibly cause you to loose your business. which is key person life insurance. Also a grand mother might want to insure a grandchild, parent or other family member. These are good investments for both parties.
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1) They agree to allow you to take out a life insurance policy on their life
2) There is an insurable interest for the coverage - (e.g. buying coverage on a family member or setting up a key-man or buy-sell agreement between business partners)
3) The policy being applied for is suitable to the need - there are limits to how much coverage can be taken out a person (generally 20-30x income - exact maximum coverage allowance varies by carrier)