You can buy a life insurance policy on a family member, romantic partner or business partner, for instance. But you can’t buy a life insurance policy on a mere acquaintance or stranger. And you can’t secretly buy a life insurance policy on someone else — at least not without committing forgery and risking jail time.

Who can buy a life insurance policy?

Primarily, anyone who has a family to support and is an income earner needs Life Insurance. In view of the economic value of their contribution to the family, housewives too need life insurance cover. Even children can be considered for life insurance in view of their future income potential being at risk.

Can you buy life insurance on someone else?

You can only buy life insurance on someone that consents and in whom you have an insurable interest. You’ll need them to sign off on the policy and prove that their death could have a financial impact on you.

Can a person take out a life insurance policy?

Insurable interest. The person taking out the life insurance policy must have an “insurable interest” in you. Basically, that means he or she must be at risk of a financial loss if you die. Examples of people with an insurable interest in your life include your spouse,…

Can you buy life insurance on your parents?

Yes. You need insurable interest and your parents’ consent to buy life insurance on them. Examples of insurable interest: You would become responsible for any of their financial obligations if they passed away. You currently rely on them financially. You and your parents co-signed on a loan together.

Do you have to have an exam to buy life insurance?

Even policies that do not require an exam would need the signature of the insured. The only situation in which insurable interest and consent are not needed is if parents apply to purchase life insurance on their minor child.