Can you buy life insurance for someone else?

You can buy life insurance for someone else if you can prove insurable interest. Also, you'll need the consent of the person you need to insure. Life insurance companies will a require medical exam of the person you will insure for a life insurance policy. The cost of life insurance will depend on the age and health of the insured. However, life insurance rates are $85 per month on average. Compare multiple companies and shop around to get the best rates.

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Jul 19, 2021

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Quick Life Insurance Facts

  • You can buy life insurance for someone else if you have insurable interest.
  • Young and healthy people receive cheaper life insurance rates.
  • A business partner’s life insurance policy can pay off debts.

Can I buy a life insurance policy for anyone? Well, probably not anyone. But you can buy life insurance for someone else you know. However, you’ll need consent to do that. Buying life insurance for a spouse without consent may cause an issue.

As you shop for life insurance for someone else, you’ll need to know the difference between term life vs. permanent life insurance. This will help classify your needs as you approach a life insurance policy to purchase.

If you’re desperately searching for a way to buy life insurance for someone else, enter your ZIP code in the FREE online quote tool above to start comparing life insurance quotes in your area.

Can I buy life insurance for someone else?

Yes. You can buy life insurance for someone else. There are specific conditions that you have to meet to insure someone else. One of the main reasons is an insurable interest. A life insurance company will want to know how you will be affected financially.

Can I buy life insurance for a boyfriend or girlfriend?

Domestic partners, like a girlfriend or boyfriend, can get life insurance for someone else. You’ll need consent from the person being insured, and you’ll have to prove insurable interest. An example of an insurable interest would be a child you have together, living arrangements, etc.

Can I buy life insurance for your grandparents?

The same rules apply, but the idea of insurable interest is easier to prove. Children and grandchildren often benefit when their grandparents are alive.

A life insurance policy on grandparents would ensure that the following generations are benefited after they’ve passed. However, you still need your grandparents’ consent.

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How do I buy life insurance for someone else?

First, you have to prove insurable interest. Life insurance companies have to know how you benefit from the insured being alive. Next, you’ll need consent to insure the person and list yourself as the beneficiary. Finally, the final stages will require you to pay as the policyholder.

Do I need consent to buy life insurance for someone else?

Proof of consent can be written in a letter, or it can be proved in person. It’s very important to confirm consent to a life insurance company. Based on the information given to the life insurance company, it could take several days to process consent.

The reason it may take longer is that the life insurance company wants to verify consent. No life insurance company can contribute to negligence, so they will investigate the information you gave them before starting a life insurance policy.

Can I buy life insurance for someone else without them knowing?

You cannot get a life insurance policy on someone else without them knowing. Life insurance companies will often ask for a medical exam before starting a life insurance policy.

In addition to other forms of proven consent, a medical exam will move the life insurance process faster. Without these items, you can’t buy life insurance for someone else, and you certainly can’t buy life insurance without them knowing.

What about spouses or parents? Can you get life insurance on a spouse or parent without them knowing? No. Consent is still the same. No life insurance policy will take out a life insurance policy without a medical exam and written consent from the other person.

How does a life insurance policy work?

The ground rules to life insurance are to compensate a beneficiary after the insured has passed away. The policyholder of life insurance can be you. You’re allowed to have as many beneficiaries as the life insurance company allows.

When someone else is the policyholder, you’re either the beneficiary or the person being insured. Ultimately, it leaves a financial cushion for those who benefit from someone being alive.

Life insurance has different types, such as whole life insurance and term life insurance. Whole Life insurance is what you pay overtime, but term life insurance only covers a specific period.

Let’s continue learning about life insurance by covering more about insurable interest.

Why you need insurable interest?

What is insurable interest? Insurable interest is proven when the beneficiary is financially benefited from another person being alive.

Will insurable interest change in the future?

Your life insurance policy will maintain the same insurable interest throughout the policy. Life insurance companies look at the insurable interest you had when you first took out the policy.

How do I transfer a life insurance policy?

Life insurance policies are assets of wealth, just like a 401(k) or IRA. Also, you can transfer the value of a life insurance policy to another company or another person. However, you have to fill out a change-of-ownership form from your current life insurance company.

However, you won’t be able to move around individual retirement accounts to life insurance. According to the Internal Revenue Service (IRS), individual retirement accounts are not allowed to invest in life insurance.

Most life insurance companies have a change-of-ownership form. Always ask how they work before you fill one out.

How much insurance coverage can I buy on another person?

That would depend on the health and other needs of the person being insured. A younger person may need Whole Life insurance, while an older person would probably enroll in Term Life insurance.

But how much does life insurance cost per month? The national average for life insurance in 2020 is $85 per month. However, let’s include the average cost of life insurance rates by state. Type in your state to see the average monthly rate.

Average Monthly Life Insurance Rates by State
StatesAverage Monthly Life Insurance Rates
Maine$47
New Mexico$48
West Virginia$49
Oregon$50
Kentucky$56
Oklahoma$56
Arkansas$57
Montana$57
Washington$58
Idaho$59
Vermont$61
Arizona$63
Indiana$64
Washington, D.C.$67
Michigan$68
Rhode Island$68
Mississippi$69
Ohio$69
Nevada$70
Tennessee$70
South Carolina$71
Wisconsin$71
Missouri$72
New Hampshire$72
Alabama$75
Texas$75
North Carolina$76
Virginia$76
Georgia$80
Kansas$80
Colorado$83
Florida$83
Louisiana$84
Pennsylvania$84
Maryland$85
North Dakota$88
California$90
Iowa$91
Nebraska$93
Massachusetts$95
Illinois$97
Utah$98
New York$108
Wyoming$113
Connecticut$114
Hawaii$124
New Jersey$126
Alaska$139
Minnesota$151
Delaware$213
South Dakota$221
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South Dakota is the most expensive state for life insurance, but Maine is the cheapest state. It’s surprising because both states appear to be similar. It’s likely the statistics of people living in both states.

However, your rates could be even cheaper, depending on your age and health. For example, life insurance for someone in their 30s is about $16 per month.

When should I buy life insurance for someone else?

If someone is searching for life insurance but can’t pay the premiums per year, it’s best to buy life insurance for them. Elders are likely to encounter problems when getting a life insurance policy, so they’ll need someone to take out life insurance for them.

Sometimes the issue is financial. Most elders are on a fixed income, so making a payment on life insurance could be expensive.

You may also want to buy life insurance when a spouse has a high-risk career. It’s not unusual for spouses of firefighters and police officers to take out life insurance on their significant other. However, these positions often come with life insurance.

Whenever a spouse or parent is in a high-risk situation, it’s best to buy life insurance for them as soon as possible.

Why should I buy life insurance for someone else?

Buying life insurance for someone else is a proactive measure to ensure that you can pay for expenses if the person passes away. Life insurance policies can pay for funeral expenses and clear any debts after the insured has passed.

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Can I cancel a life insurance policy someone has on me?

Yes. If you’re insured, the policyholder is responsible for ending the policy and must surrender the cash value to the person insured. Once the money has been surrendered to the insured, the life insurance policy won’t exist any longer.

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Four Reasons Why You Can Buy Life Insurance on Someone Else

Let’s iron out any details that we may have missed in the previous sections by giving you reasons to buy a life insurance policy for someone else.

Insure a Spouse

It’s tough to imagine the worst thing that could happen, but you want to be ready if it does. A spouse should take a life insurance policy if one or the other is in a high-risk career.

Any spouse with a life-altering medical condition should have life insurance taken out on them, also. A husband or wife buying life insurance under these conditions is an insurable interest.

Insure a Child

Another event we want to avoid at all costs is the loss of a child. Taking out a life insurance policy on a child will prepare you financially for funeral expenses and other lost wages.

Parents who are Senior Citizens

Term life insurance companies understand that many children of elderly parents will be responsible for debts and funeral expenses after their parents have passed away. Therefore, insuring elderly parents is a clear, insurable interest to buy life insurance.

Business

Any vital partner of your business that would be affected if someone passed away should carry life insurance. A life insurance policy on a business partner may not pay for funeral expenses, but it will take care of some of the responsibilities left behind.

The Best Life Insurance Companies for Buying Life Insurance for Someone Else

All life insurance companies are well-rounded in providing life insurance for everyone regardless of the situation. The idea is to provide life insurance coverage for whoever is insured. Therefore, you won’t get special treatment for buying life insurance for someone else.

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Buy Life Insurance For Someone Else: The Bottom Line

You can only buy life insurance for someone else if you have insurable interest and consent. Without these two items, you won’t be able to get a life insurance policy on another person.

Present letters of consent, medical exams, and other required documents to move the life insurance process faster.

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Frequently Asked Questions: Buy Life Insurance for Someone Else

Let’s recap what you’ve learned by answering a few questions. These answers will jog your memory and build your confidence when buying life insurance for someone else.

#1 – Can you buy life insurance for someone else without them knowing?

No. The life insurance company will need to see the insurable interest and a medical exam of the insured person. Without that, life insurance companies will not allow you to buy a policy.

#2 – How to avoid doing anything fraudulent when buying life insurance for someone else?

Give the life insurance company everything they request. Any attempt to skip proof of consent or a medical exam may appear fraudulent. The more you play by the rules, the easier it is to avoid fraud.

#3 – When you shouldn’t buy life insurance for someone else?

Any attempt to take life insurance out on someone for a malicious reason is a reason why you shouldn’t buy a life insurance policy on someone else.

#4 – Can you buy life insurance for anyone?

No. You can only take out life insurance through insurable interest. The life insurance agents will evaluate your conditions and determine whether you have an insurable interest. You can’t do that with just anyone.

#5 – How do you buy life insurance for a family member?

You have to prove that you benefit from a family member being alive. Next, you’ll need consent. That usually comes in the form of a letter and a medical exam.

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