Which family members can I buy life insurance with?
Spouses, parents, children, siblings, grandparents and grandchildren are some family members for whom you can consider buying life insurance. Of course, this is not the case for everyone. Let's go through when it can make sense.
Spouses or partners
It is easy to understand the insurable interest between partners. If you share a home, you probably share the bills. If you are parents, you are raising children together. One of your deaths would have a significant impact on the other.
Partners who work outside the home need a life insurance policy that replaces their income in the event that they die unexpectedly. Parents who live at home also need life insurance. These people devote a lot of energy to running the household. Hiring people for this job would cost a lot of money.
Life insurance is the most affordable type of life insurance for families. Permanent life insurance is another option, but most families think that life insurance is the best choice.
It is not uncommon for adult children to help care for their aging parents. It is also not uncommon for these children to want to buy a life insurance policy for their parents to recoup care costs and have money for a funeral and end-of-life expenses.
The question comes when trying to find affordable coverage. . Life insurance is more expensive to buy for an older individual and product options can be limited depending on how old your parent is.
Buying life insurance for an older person is not impossible, but it is not as easy as buying it on your own. You must prove your insurable interest and ensure that your parent agrees to the insurance.
If you are considering buying life insurance for your parents, read more about the topic here: Can I buy life insurance for my parents?
Buying life insurance on grandparents is a similar concept to buying life insurance for your aging parents. You are probably considering it because you care about the person.
The age and health of your grandparents determine your options. And do not forget that you must also have insurable interest and their consent. Providing proof of insurable interest will be more challenging than other family relationships.
If your grandparent has dementia, Alzheimer's or would otherwise be physically unable to give his or her consent, you will not be able to purchase life insurance for him or her. [1
Buying life insurance for a child is common. Parents never want to think that their children may die before them. But should the worst happen, a life insurance policy can help pay for a funeral and allow the parent to take time off work without having to worry about bills.
You can not buy life insurance for minors, but life insurance is a options and you can lock in low prices. Due to these low premiums, many choose to have the insurance fully paid for in 10 or 20 years. The insurance accumulates cash value and will continue to grow even after it has been paid.
There is a main requirement to buy a life insurance policy for your child. You, the owner of the children's full life insurance, must have your own life insurance for an amount equal to or greater than the nominal amount you want to buy for the child.
Many grandparents buy a full life insurance policy for their grandchildren. It is a way to give them an edge over their financial future, while protecting their future insurance opportunities.
A child's entire life insurance has the potential to accumulate cash value each year. This cash value can grow to a considerable amount once the child is an adult.
When an adult is an adult, many grandparents give this policy to the grandchild by transferring ownership. The adult child can now access this cash value and borrow against it to pay for things like a down payment on a home, to help pay for college, to finance a business opportunity, or to provide a comfortable pension.  In addition, once the insurance has been issued, the insurance can not be terminated as long as the premiums are paid. This can ensure that the child always has a life insurance even if it becomes uninsured.
If the grandparent is the child's primary guardian, the insurance companies usually do not require the child's parents' consent. If the grandparent is not the primary caregiver, some carriers require the child's parents to sign the application.
It is definitely less common for someone to take out insurance for a sibling. Parents and children are often in a position to take care of each other, but siblings, less so.
However, situations may arise where there is an insurable interest and siblings may want to buy a life insurance policy for each other. If you and your siblings are roommates, life insurance can make sense. If you and your siblings share the responsibility of caring for your aging parents, a life insurance policy can help cover the extra costs that the surviving sibling would incur if a sibling died unexpectedly.
Life insurance can be life-saving if a close and loved ones die prematurely. Take the time to think about whether to buy life insurance for certain family members.
Life insurance helps ensure your family's financial well-being in the face of tragedy. Start the process by getting free quotes on life insurance. No contact information required.