Can you buy life insurance for someone else

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Life insurance is a crucial financial tool that provides protection and financial security for individuals and their loved ones. But what if you want to buy life insurance for someone else? Can you purchase a policy on behalf of another person? In this article, we will explore the concept of buying life insurance for someone else and discuss the options available.

Buying Life Insurance for Someone Else

Legal and Insurable Interest: In most cases, you can buy life insurance for someone else as long as you have an insurable interest in that person’s life. Insurable interest refers to the financial or emotional relationship between the policyholder and the insured individual. Common examples of insurable interest include spouses, children, and business partners.

Consent and Knowledge: When buying life insurance for someone else, it is essential to have the individual’s consent and knowledge. The insured person should be aware that a policy is being purchased on their life and provide their consent for the coverage. This ensures transparency and avoids any legal or ethical issues.

Ownership and Beneficiary Designation: As the policyholder, you have the right to own the life insurance policy and designate the beneficiary. You can choose to be the policy owner and beneficiary or assign someone else as the beneficiary. It is crucial to communicate with the insured person and discuss their preferences regarding the beneficiary designation.

Types of Life Insurance Policies

Term Life Insurance: Term life insurance provides coverage for a specific period, typically 10, 20, or 30 years. It offers a death benefit if the insured person passes away during the policy term. You can buy term life insurance for someone else, ensuring their financial protection during the chosen term.

Permanent Life Insurance: Permanent life insurance, such as whole life or universal life insurance, provides coverage for the insured person’s entire life. It offers a death benefit and often includes a cash value component. Permanent life insurance can be purchased for someone else, providing lifelong protection and potential cash value accumulation.

Considerations and Limitations

Insurable Interest Requirements: When buying life insurance for someone else, you must demonstrate an insurable interest in their life. This requirement ensures that life insurance is not used for speculative purposes or to benefit from someone’s death without a valid reason.

Medical Underwriting: The insured person will typically need to undergo a medical underwriting process to determine their insurability and premium rates. This process involves completing a health questionnaire, and in some cases, a medical examination may be required. The insured person’s health and medical history can impact the availability and cost of the life insurance policy.

Ownership and Control: As the policyholder, you have control over the policy, including premium payments and any changes to the coverage. However, it is essential to consider the insured person’s wishes and involve them in the decision-making process.


Buying life insurance for someone else is possible as long as you have an insurable interest and the individual provides their consent. Term life insurance and permanent life insurance are two common options for purchasing coverage on behalf of another person. It is crucial to navigate the legal and ethical considerations, involve the insured person in the process, and consider their preferences regarding ownership and beneficiary designation.


– Investopedia:
– Policygenius:
– The Balance: