Life insurance policies are purchased by the person whose life is meant to be insured.
The Owner of the policy is the one who pays the premiums and chooses the Beneficiary or beneficiaries of the coverage.
Also, spouses, family members, or anyone else who can prove that they have an Insurable Interest in the person to be insured, can also take out a policy for them.
Insurable Interest means you either rely on the person for some means of financial support, or that the person's death would result in a financial loss or cost to you; such as, having to pay for the person's burial expenses.
To be able to purchase life insurance, consumers will need to complete an application for coverage and usually a phone interview is needed.
Common Reasons to Buy Life Insurance
Examples of Who Purchases Life Insurance
Main Breadwinner
It’s very common for the main breadwinner of a family to purchase life insurance so if that person were to pass away unexpectedly, the family would be provided for to maintain their lifestyle and pay the monthly bills.
Father or Mother for Family
One of the most common examples of someone who purchases life insurance is a father or mother who wants to provide financial security for the future of his or her family.
Parents for Children
Parents also buy life insurance to make sure in case they pass away, their children have money needed to attend college in the future.
Adult Child for Senior Parent
Many adults purchase final expense life insurance plans for their elderly parents.
In case your senior parent has no money saved, lives on a limited income, or had no life insurance, an adult child can buy life insurance on his/her parent to pay for a funeral, burial, and other related final expenses.
Life Insurance Quotes
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Can I Buy a Life Insurance Policy on My Adult Child?
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Top Reasons to Buy Life Insurance
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