If you’re wondering if you can purchase a life insurance policy on your ex-spouse, or your child’s mother or father, the short answer is yes. As long as you can demonstrate an “insurable interest” on an individual, you can generally purchase a life insurance policy on their life.

Why would someone take a life insurance policy out on a child?

Child life insurance policies pay out a lump sum in the event of a death, as long as the premiums are paid. Pros: The payout can be used for expenses like burial costs or grief counseling. It can also help cover the costs of running a business if you’re the owner and need to take time off, Bonneau says.

Can a parent take out life insurance on a child?

If you’re a parent or grandparent looking to purchase life insurance for your children or grandchildren, you may be able to take a policy without them knowing, because the child’s parents or guardian can give consent on their behalf.

How old do you have to be to get life insurance on a child?

In most cases, only birth or adoptive parents, or court-appointed legal guardians, can take out life insurance on children under age 17. Children age 15 or older must sign any life insurance application someone takes out on them.

Who is the beneficiary of a child life insurance policy?

With a policy for a child, the child is insured, but a parent, grandparent or legal guardian is the policyholder. The policyholder also can be the beneficiary who receives a payout if the insured child dies.

When to take out a life insurance policy on someone?

If you or your children still depend on your former spouse for income, childcare, or other needs, consider taking out a policy on them and naming yourself or your adult children as beneficiaries. Sometimes, during divorce proceedings, a judge may require life insurance as part of spousal support.