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The simple answer is yes—you can buy life insurance for someone else if they agree and are aware of the decision.1 However, you can’t buy a plan for anyone without an insurable interest and consent from the person you are buying life insurance for.1
Insurable interest is present when you can prove to an insurance provider that it would be financially harmful to you if the person you aim to take a policy out for passes away. Simply put, you must prove that you rely on someone else while they are alive and would suffer financially if that person died.1 Read on to learn more about how to life insurance works and how to get a policy for someone else.
Before we dive into buying life insurance for someone else, it’s crucial to understand how life insurance works. In a nutshell, a policyholder purchases life insurance to help ensure their loved ones have financial protection after they pass. The policyholder pays regularly scheduled premiums to ensure their beneficiary receives the death benefit or predetermined cash payout.2 The beneficiary is the person chosen to receive the death benefit after the policyholder passes.
Aflac offers two life insurance plans, term and whole life. Term life insurance provides coverage for a specified period, like 10, 20 or 30 years.2 If the policyholder passes during the term, the beneficiary receives the death benefit. Term life insurance plans are usually affordable, and premiums typically stay the same throughout the life of the plan.
On the other hand, whole life insurance lasts the policyholder’s entire life. Part of the premium payments go toward the standard death benefit, and another portion goes into an investment-like benefit known as the cash value. In some cases, like in Aflac Whole life Insurance, policyholders may be able to borrow against the cash value in the form of a loan.2
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
To get a life insurance policy for someone else, you need to first prove insurable interest. After you have proven that you have an insurable interest, you need to show that you have consent from the person you are trying to insure. The person the life insurance policy is for must be present for every step of the application process.1
From there, you can fill out a straightforward application form that clarifies your benefits and how the life insurance policy functions. The life insurance application may ask you who the beneficiary is, who the policy is for and how much coverage you would like. At Aflac, the person being insured may not be required to have a medical exam completed by answering a set of questions instead. Requirements vary based on the different levels and options. There may also be different requirements based on the state of residency as well.
While you can’t take out life insurance on just anyone, you can buy a plan for someone else if all criteria is met. There are a handful of people you may be able to prove you have an insurable interest for more easily:
While you can’t take a life insurance policy out on anyone, you can get a policy for someone else if you have an insurable interest. If you’re interested in getting life insurance, Aflac offers term and whole life insurance plans for the people you care about most. You can get a life insurance plan for yourself or someone close to you if you have their consent and show you have an insurable interest. Get a quote today to understand your life insurance coverage options more in-depth..
1 Market Watch - Can You Take Out Life Insurance On Someone Else? Updated February 1, 2024. Accessed February 20, 2024. https://www.marketwatch.com/guides/insurance-services/buying-life-insurance-on-someone-else/.
2 Investopedia - Life Insurance: What It Is, How It Works, and How To Buy a Policy. Updated September 21, 2023. Accessed February 20, 2024. https://www.investopedia.com/terms/l/lifeinsurance.asp.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400.65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX.Q60000 series: Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
Final Expense insurance coverage is underwritten by Tier One Insurance Company. The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent. Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac does not offer Universal or Variable Universal life insurance.
WWHQ | 1932 Wynnton Road | Columbus, GA 31999
NY | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
Z2400152
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