People often ask us if they can buy burial insurance on someone else. The quick answer is YES, you can. However, there are some guidelines that must be followed.
There are several insurance policy types available if you want to cover for someone else, but the most important thing is that you must have an insurable interest on the person you want to buy life insurance coverage on (this means that you must suffer a financial loss when the insured dies).
Most insurance companies consider insurable interest to be your immediate family, such as your spouse, parents, children, grandchildren.
In this article, we will explain what is required to get burial insurance on someone else and how to choose the best plan at the best price.
INFORMATION WE NEED IF YOU WANT TO GET LIFE INSURANCE ON SOMEONE ELSE
Before you take life insurance on someone else, it’s important for you to provide us some basic information about the proposed insured.
Here are some questions that will help us determine eligibility for burial or final expense coverage:
- Who do you want to insure?
- How are you related to the proposed insured?
- Who will be paying for the coverage?
- How much coverage are you interested in?
- Does the proposed insured have any past or current health problems?
- What medications is the proposed insured taking?
- Has the proposed insured been hospitalized within the last 24 months?
- Has the proposed insured had any heart attacks, strokes, or cancer?
Depending on your answer to these questions, we will be able to get a good idea about the proposed insured. We will use this information to determine what burial insurance company will offer the best pricing.
WHO ARE THE PEOPLE YOU CAN BUY BURIAL INSURANCE ON?
The primary reason for buying burial insurance on someone else is to help protect yourself financially in the event of someone else’s death.
Here are the people who qualify for insurable interest when buying a burial life insurance policy:
- Elderly parents
- Spouse or life partner
- Significant other
- Anyone whom you depend on such as a brother or sister
WHAT ARE THE REQUIREMENTS TO GET BURIAL INSURANCE ON SOMEONE ELSE?
Insurable interest means that when the insured dies, you will be negatively affected financially. Being related to someone by blood or marriage does not mean you can buy life insurance on them. You need to prove first that their death would negatively impact your finances.
Insurable interest is the reason why you can’t just buy life insurance on a stranger. This is because that person has no significant effect on your finances. If that person dies, you will not suffer any financial loss.
It is illegal for life insurance companies to sell policies on people without showing insurable interest. It is required by law to ensure that the death of the insured would not create personal gain on the policy owner. Allowing people to own life insurance on anybody could lead to foul play or murder for insurance payouts.
While buying final expense insurance on someone else is possible and legal; however, there are some restrictions. You cannot buy a policy on your family member or someone else without them knowing about it. Additionally, somebody else cannot purchase a policy on you without your consent.
Consent is needed to purchase and qualify for burial insurance. The proposed insured must be aware that you’re buying a policy on them and they must agree with it. The proposed insured is also required to sign a consent form on the application.
It is nearly impossible to buy life insurance on someone else without their consent because more life insurance providers require permission to review a person’s medical history. Even no exam policies like a simplified issue and guaranteed issue policies require the signature of the insured.
Life insurance is a heavily regulated industry and having insurable interest and consent makes it virtually impossible for anybody to get a life insurance policy on anybody. If in case someone was able to get a guaranteed issue policy without permission, this will be a fraud. Insurance fraud is a type of felony, and you could end up in jail.
WHEN INSURABLE INTEREST AND CONSENT IS NOT NEEDED
The only instance in which both insurable interest and consent are not needed is when a parent or grandparent applies to purchase life insurance for their minor child. You don’t need permission to purchase a life insurance policy for your child under the age of 18.
BUYING BURIAL INSURANCE ON SOMEONE ELSE
Here are the types of relationship which give insurable interest for you to buy final expense insurance on someone else:
- Parents purchase life insurance for their children.
- Children buy life insurance for their elderly parents.
- Spouse and life partners purchase life insurance on each other.
- Grandparents buy life insurance for their grandchildren.
- Significant other buy life insurance on one another.
- Dependent may buy life insurance to those who they depend on.
BUYING BURIAL INSURANCE ON YOUR CHILD
You will only need consent to buy life insurance on your child if your child is 18 years or older. You can get a permanent life insurance policy on your children to secure your children’s future insurability and to let the policy start to accumulate cash value.
BUYING BURIAL INSURANCE FOR ELDERLY PARENTS
Children can purchase life insurance policies on their parents. Adult children can get a policy and become responsible for making premium payments instead of letting their mother or father struggle to pay the premium.
Children need to show insurable interest and parent’s consent to buy burial insurance on them.
Some insurable interests include:
- Becoming responsible for any financial obligations when the parents passed away
- Relying on the parents financially
- Cosigning on a loan together
The type of life insurance policy you can buy on your parents depends on their age. We recommend you buy a whole life insurance policy if it is intended to cover burial or final expenses.
BUYING BURIAL INSURANCE ON SPOUSE
It’s common to buy a burial insurance policy on your spouse. Because most spouses contribute to bills and share bank accounts, insurable interest is certain.
Buying life insurance on your spouse will make sure that you won’t go into debt when your spouse passed away. The life insurance payout may also be used to pay for final expenses, pay for your children’s education and pay the mortgage.
BUYING BURIAL INSURANCE ON GRANDCHILDREN
One great thing a grandparent can do is to offer to pay for a life insurance policy on their grandchildren, making their parents the beneficiaries and owner of the policy. This can help the parents who are struggling financially and can’t afford to pay the premiums to buy a life insurance policy on their children.
A whole life insurance policy that builds cash value could be used to pay college expenses of the grandchildren. This would be an excellent birthday gift for a grandchild.
BUYING BURIAL INSURANCE ON YOUR SIGNIFICANT OTHER
If you’re not married but in a committed relationship, you can purchase a life insurance policy on one another. You need to show insurable interest and consent to buy coverage. You can prove insurable interest by showing your finances are joined.
Other insurable interest can include:[su_list icon=”icon: arrow-right”]
- Having children
- Being engaged
- Jointly owning a home or business
- Debts naming you both like a car loan
- Both of you are on a lease
If you are engaged and living together, your fiancé’s death can have a financial impact on you. When applying for burial insurance on your significant other, use the title “significant other” or “partner” instead of “girlfriend” or “boyfriend.”
BUYING BURIAL INSURANCE ON ANYONE YOU DEPEND ON
You could also purchase life insurance on people who are providing you assistance because their death would create a financial loss. It could be all sorts of different people, but you need to prove insurable interest in that person.
If you have a successful son that pays your rent, or your ex-spouse is giving your child support payments, you can buy burial insurance on them. Many instances could apply here.
If you can prove that you will have financial difficulty because of that person’s death, you can demonstrate insurable interest. You may be able to buy a life insurance policy on that person.
HOW TO GET BURIAL INSURANCE ON SOMEONE ELSE
The process of purchasing burial insurance on someone else is simple.
- Make sure you have an insurable interest on the person you want to insure.
- Have the consent to review the medical history of the person you want to insure.
- Determine the death benefit amount you want to apply for.
- Identify any medical conditions for the proposed insured.
- Find a life insurance provider by completing the instant QUOTE form on this page.
- Fill out an application for the insured.
- The person you want to insure will be contacted by the life insurance company to verify the information.
- The underwriter at the life insurance company will review the application to assess the overall risk of the person being insured.
- If the application is approved, you will receive the policy in less than ten business days.
- Pay the monthly premium on whatever day you selected.
HOW CAN FUNERAL FUNDS HELP ME?
Trying to find a policy on someone else needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.
If you have a history of buying burial insurance on someone else, let us help you; we will work with you side by side to find a plan that fits your needs.
We will work with you every step of the way to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time anymore searching for multiple insurance companies because we will do the dirty work for you.
We will shop your case to different insurance carriers and get you the best price.
We work with many A+ rated insurance carriers that specialized in covering high-risk clients like you. We will search for all those companies to get the best rate. We will match you up with the best burial insurance company that gives the best rate.
We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for funeral insurance on someone else, or burial insurance on someone else, or life insurance on someone else, we can help. Fill out our quote form on this page or call us at (888) 862-9456 and we can give you an accurate quote.