Can you buy life insurance for someone else?

Yes, you can buy life insurance for someone else. Life insurance protects you if a person you financially depend on passes away, but 1 in 5 people are underinsured. To buy life insurance for someone else, you must prove insurable interest and have their consent. It is common to take out policies for spouses, parents, adult children, people you’ve co-signed a loan or mortgage with, and business partners. Compare life insurance quotes for someone else online to get the best rates.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: May 1, 2021

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The Highlights

  • You can buy life insurance for someone else only with their consent, and if you can prove insurable interest
  • Insurable interest means you’ll suffer financially if the person you’re taking the life insurance policy out on passes away
  • You cannot buy a life insurance policy for someone without them knowing

Can you buy life insurance for someone else? Purchasing a policy for another person is legal as long as you have their consent and can prove insurable interest.

Below, learn what stipulations you must follow when comparing life insurance quotes for someone else, how to purchase a policy legally, and who you can take a life insurance policy out on.

From parents to spouses to children, you can find the best life insurance company for someone else by entering your ZIP code into our free quote tool above.

Can you buy life insurance for someone else?

To legally seek out life insurance rates for someone else, you must prove insurable interest, and you have their consent.

It doesn’t matter if you are planning on paying the policy premiums yourself.

Proving insurable interest means showing that you’re financially dependent on the person for whom you’re buying the policy. If that person dies, you will experience financial hardships.

Spouses and parents can sometimes purchase life insurance policies for one another without proving insurable interest. But business partners or other relationships will need the proper documentation.

Can you get a life insurance policy on someone without them knowing? No, you need the person’s consent to complete the life insurance application process.

Many whole and term life insurance policies require the insured to take a medical exam and answer personal questions.

You’ll need their cooperation to complete these steps appropriately. They also need to sign the final documents and paperwork.

Failing to follow these guidelines puts you at risk of committing insurance fraud.

According to the Insurance Information Institute (III), it’s a crime to commit insurance fraud in all 50 states.

The consequences for committing life insurance fraud include jail time, lengthy prison sentences, and hefty fines.

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How do you buy life insurance for someone else?

When buying life insurance for someone else, be sure you answer every part of the application accurately and honestly on their behalf.

You’ll need details about their medical history and status, as well as other personal information. A medical exam may also be required, depending on what type of policy you pursue.

You can only buy enough life insurance coverage to account for the level of insurable interest you proved.

For an elderly parent, the financial necessity often only includes funeral costs and other end-of-life expenses.

However, if you try to take out a term policy on your parent with a $1,000,000 death benefit, you might raise some red flags.

If you’re buying life insurance for someone else, taking the time to choose the right company will be important. Some insurance providers that sell final expense and burial insurance include:

By buying a policy for someone else and naming yourself as the beneficiary, you gain more control.

You’ll receive the premium statements and have authority over changing or naming the beneficiary. You can also surrender or take out loans against the policy as needed.

Can you buy life insurance on anyone?

Can you take out a life insurance policy on anyone? Technically, you can’t take out life insurance on a stranger.

However, with their consent, you can take out a policy on any person you depend on financially.

Typical scenarios include adult children, senior parents, siblings, spouses or partners, business partners, or essential employees.

If you co-sign a loan for someone, as often happens with adult children, taking out a life insurance policy on them can ensure you have the means to pay off those loans if something were to happen to them.

Apply the same logic to co-signing car loans and mortgages.

Similarly, if you take out life insurance on your business partner, the death benefit goes towards keeping the business afloat after their passing.

Taking out an insurance policy on a valuable employee works the same way.

Ultimately, any person you depend on financially, you can take a life insurance policy out on.

Buying Life Insurance for Someone Else: The Bottom Line

Can you take out life insurance on anyone? As long as you have their expressed consent and cooperation and financially depend on them, the answer is yes.

Find the best life insurance prices for yourself or a loved one by shopping around and comparing policies from multiple companies online.

Compare affordable life insurance rates for someone else or yourself by entering your ZIP code into our free quote tool below.

Are you looking for free insurance quotes?

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