Can I buy life insurance for someone else?

Yes, you may be the owner of a life insurance policy that insures someone else. Typically, there are three parties in a life insurance contract:

1. The owner, who has the right to make decisions
2. The insured, who’s life is covered
3. The payor, the individual or entity that is paying for the policy.

However, you will need three items to be able to buy life insurance on another party: Insurable interest - there needs to be reasonable financial risk for the owner if the insured passes away Medical exam - most often, there is a medical exam required for the insured to complete Consent forms - the insured will need to sign the application and policy approval form to acknowledge their consent Some examples of individuals you can purchase policies on are: business partners, children (the one instance where you do not need their consent as long as they are under 18 years old), spouse, and parents.