Just thinking about buying life insurance on my brother, He is younger than me and I love him with all my heart but he always in need of something money from me a place to sleep etc. He is 44 years old and at time drives me to pulling my hair. Has some medical problems now. I feel really low for asking but it would be nice to get something back for putting out countless money and everything that comes with it. Can I do this?

  1. 0 POINTS
    John "Jake" Nugent II
    Solution Provider, Madison Strategic Partners Group, Greater New York City Located, Serving Clients Nationwide
    The short answer is YES, you are able to purchase life insurance on the life of your brother. 

    The basic rule or measure in determining the legality of purchasing life insurance on another is "Insurable Interest", in other words, 'Do you have an interest in the continuation of the insured's life?'.  The blanket explanation of insurable interest is a relationship through love, blood and business.   Therefore, you could not go out and purchase a policy on a stranger as that would be considered a wagering contract.

    Secondly, after meeting insurable interest requirements, the next guideline is that you are limited in the amount of coverage you can purchase based upon the insured's net worth.  Simply put, if you brother does not have two pennies to rub together, you may have a difficult time purchasing coverage on his life.

    Specifically to your situation, it seems that you have met the basic requirements to purchase coverage on his life.  However, in order to do so, you will need his permission meaning that he will need to co-sign the application for insurance.  With the sensitive nature of your current relationship, the best way to present the need for insurance to your brother is that you wish to have enough coverage on his life to prepare for "final expenses".    This would include funeral expenses, probate expenses if he has any assets and any other unresolved, secured debt that could be passed on to his estate.

    Do not feel guilty for your thought process, it is a very wise way to consider and utilize such a valuable asset to protect yourself against the financial burden that our loved ones sometimes create.
    Answered on November 18, 2013
  2. 0 POINTS
    Ann Arbor, MI
    I'm almost afraid to answer this question but I will anyway.  I can understand how you could feel that you're owed something for all the time, money, and heartache you've invested in your brother.  Would money really make all that better?  It seems every family has one member who takes care of everyone else and it sounds like you're that person in your family.  I also believe that, eventually, you'll be rewarded for it and it'll probably be with something worth more than money.

    While you can't put insurance on your brother, he can surely buy some of his own and name you as the beneficiary.  You can even pay the premiums if you'd like but he has to make the decision and go through the process.
    Answered on November 18, 2013
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