1. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    You can buy term life insurance for someone else if you have a vested financial interest in that person, or (for a small amount of coverage) if you are a close relative. To have a financial interest in the insured person means that if they died, you would suffer financial loss.

    With the exception of minors, you also need to get permission from the person who is being insured. They need to sign the application, and consent to the phone interview or exam if that is required.
    Answered on September 26, 2014
  2. 10968 POINTS
    Tim WilhoitPRO
    Owner, Your Friend 4 Life, Brentwood TN
    It depends on the fact called "insurable interest". Insurable interest deems you have a relationship with this person, either family, partner, or key person in a business, that you would suffer a financial loss with out them. It could be a debt or a final expense. You may never purchase life insurance without the persons knowledge. The person must sign, be examined and be underwritten in order to qualify for this coverage.
    Answered on September 26, 2014
  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    I have seen another situation where someone wanted to know that another person had sufficient life insurance to meet final expenses. In that case the payer didn’t have any financial interest, nor was the payer the beneficiary or owner. When the policy was issued it showed the insured as the premium payer since each payment to the policy was a gift from this third party. So, yes, it can be done and in some tight cultural communities it might make good sense.
    Answered on September 26, 2014
  4. 21750 POINTS
    Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! You can, but there has to be a couple of things that you can do first. The main thing is realize that the person you wish to buy it for has to understand what you are doing, and why. If they won't agree to sign, or cannot understand what is going on, the policy won't be issued. You will also have to meet the companies standard for having the ability to show your "insurable interest." That is the rule that keeps people from insuring random people, and gambling on their lifespans for personal profit. (That was an issue in the early days, when some unsavory folks figured out how life insurance worked!) You will have to show that their passing will cause you a loss. If you can do those two things, and are certain that a term policy is the best option, then you should have no problem getting the policy. Thank you for asking!
    Answered on September 27, 2014
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