No. A spouse does not have to be the Beneficiary of a Life Insurance Policy. It can be anyone that has what is called an "Insurable Interest" in the person being Insured. In otherwords, it is supposed to be someone who could possibly suffer a financial loss if the Insured were to die. This could be most any family member, a close friend, or even a business partner.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Though very common to name your spouse as beneficiary to your personal life insurance policy when designed for your family's financial security, there are other situations that call for life insurance where this might not be the case. For example, if you are a partner in your business with another person, each of you may set up a cross purchase arrangement in the event that either of you die. These can be secured by the purchase of a Life Insurance policy for each of you and in a case like this, you would name your business partner as beneficiary and your partner would name you.
No - You can name ME as your beneficiary.... hehehe
In order to buy life insurance on someone, you have to have an "insurable interest"... I can't buy life insurance on just anyone. There has to be a connection that would harm you financially should the person pass away. Examples are your spouse, kids, other family if you have a financial interest in something together, a business partner, someone you loaned $$ to, etc. I bring up insurable interest because in these cases, you, or someone else facing a financial loss due to the persons death, has to be the beneficiary.
Now... if you buy life insurance on yourself, you can pretty much name any person or legal entity as the beneficiary. Leave the funds to a spouse, kids, your favorite non-profit, or to me... Ok. Not me.
So the answer of "who can be the beneficiary" all depends on who the insured is, the owner of the policy, and what the connection between everyone involved. have more questions -- Reach out!
-gravy
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In order to buy life insurance on someone, you have to have an "insurable interest"... I can't buy life insurance on just anyone. There has to be a connection that would harm you financially should the person pass away. Examples are your spouse, kids, other family if you have a financial interest in something together, a business partner, someone you loaned $$ to, etc. I bring up insurable interest because in these cases, you, or someone else facing a financial loss due to the persons death, has to be the beneficiary.
Now... if you buy life insurance on yourself, you can pretty much name any person or legal entity as the beneficiary. Leave the funds to a spouse, kids, your favorite non-profit, or to me... Ok. Not me.
So the answer of "who can be the beneficiary" all depends on who the insured is, the owner of the policy, and what the connection between everyone involved. have more questions -- Reach out!
-gravy