You can put a life insurance policy on someone else if you have an insurable interest in that person. That means that, if they passed away, it would hurt you financially. E.g. you could take out life insurance on someone to whom you loaned a large amount of money, so that you would get your money back if that person died.
Life insurance companies look at immediate family relationships as an emotional loss when death occurs, which justifies financial remuneration. However, even taking out a life insurance policy on a relative will have some financial considerations in determining how much you can put on them.
Life insurance is predicated on a personal financial profile that includes a risk tolerance assessment, your financial goals and a life expectancy review. Then you need to establish insurable interest between you and someone else as well as justify the amount of life insurance. How will you suffer from their financial liabilities, future obligations that may affect you?
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Life insurance companies look at immediate family relationships as an emotional loss when death occurs, which justifies financial remuneration. However, even taking out a life insurance policy on a relative will have some financial considerations in determining how much you can put on them.