Yes, but only if you have an insurable interest and the person agrees. That means you would lose money if they died, and they sign the application.
Insurable interest means the death would hurt you with money loss. That could be lost income, debt you would have to pay or harm to a business.
Family members usually qualify. In some cases an employer, a business partner or a major lender can too. A stranger cannot buy a policy on you.
The person must know and agree. They have to sign the application. The insurer may also ask them to take a medical exam.
In most states, insurable interest only has to exist when the policy is bought. The policy generally stays valid if the relationship changes later.
The owner pays the premiums and controls the policy. The owner picks the beneficiary and is the only one who can cancel it.
- Your spouse or partner
- Your children
- Your parents
- A person who cosigned a loan with you
- A business partner
More questions
Can I insure a friend?
Usually no. Friends and strangers generally do not have an insurable interest.
What if we divorce later?
In most states the policy can stay in place. The interest only had to exist when you bought it.
Words to know
- Beneficiary
- The person you name to get the death benefit when you die. You can name more than one.
- Insurable interest
- A real reason to want someone to stay alive, either love or money. You need it to buy a policy on someone else.
- Owner
- The person who owns the policy. They can use the policy values and make changes while the insured is alive.
- Premium
- The amount you pay an insurance company for your policy.
