Buying a Life Insurance Policy for Someone Other than Yourself

You may want to purchase a Life Insurance policy on someone other than yourself to protect for your children. A Life Insurance policy can be acquired to cover you to protect a loved one or a family member, which is pretty common nowadays. There is nothing to stop you from doing so.

Key Man Life Insurance Quotes

A “key individual” is a type of life insurance policy, where a company or Individual could purchase coverage on a person or applicant who a company may rely on to stay in business. Some large stock trading firms may decide to purchase this type of policy for their highest paid, most important personnel, such as the Chief Executive Officer (CEO) or the Chief Financial Officer (CFO).

Smaller companies may also elect to purchase this type of coverage for a similar reason. Also, companies which employ only one person who plays a very important part in their business would likely go out of business in the event that person dies unexpectedly. The majority of CEO’s should be covered with some form of key man life insurance policy especially with low rates available.

Term Life Insurance Beneficiaries

The main area of interest here is as to whether or not you can attain such a life insurance policy for someone else is proving an insurable interest in the person’s life. Some companies may ask you to provide information which would demonstrate how the loss of this person’s life would have a direct negative effect on your financial status.

It’s possible that you may have a hard time convincing a Life Insurance company to issue this type of key coverage policy for someone whose life is not connected to you financially. Our Cheaper Term Life Insurance Company can assist you in obtaining the affordable Term Life Insurance coverage.

Term Life Insurance and Your Health

Another hurdle in obtaining a Life Insurance policy for someone other than yourself is that most polices require the person whose death is being insured against to undergo a battery of health tests. It would probably raise a red flag to the unwary individual when they were asked to donate blood and urine for analysis, as well as potentially having to undergo some sort of physical or stress test.

Cheaper Term Life Insurance Quotes

Typically the person who is being insured, referred to as the applicant may also be required to sign the application. The signature is pertinent and necessary to the application and if you were trying to purchase Life Insurance for a business partner and you had all necessary criteria but did not have a signature,

The Life Insurance company may think that you might be trying to pull a scam of some sort. Even if you were able to trick the life insurance company and the individual to the point where a policy is issued, perhaps by obtaining a simple issue or guaranteed issue policy, you can certainly expect to have to explain yourself to them before being issued your check in the event of their death.

Share

Comments are closed.