LIFE INSURANCE POLICY - FOR A SOMEONE ELSE
Life Insurance for Someone Else & Insurable Interest
Insurable interest means - that you could be adversely affected financially if that person who is insured died.
You cannot just buy a life insurance policy on another person if they are totally unrelated to you or your situation in any capacity ( ie; unknown to your personal or business life ) just because you think that somebody else could die & you could benefit from a financial sum; That person may have no bearing on your situation or finances. If that somebody else unfortunately died, you would not be affected financially.
The reasoning behind insurable interest is so that the death of an insured person may not create personal financial gain ( rather than loss ) for just anybody.
Can I buy a Life Insurance Policy for a Family Member ?
Yes - but UK Insurance rules state there must be an insurable interest between another family member to arrange a life insurance policy. eg; a joint mortgage or rental agreement
Can I get a Life Insurance on Someone Else or Person without them knowing ?
No - both parties must consent to this arrangement ie; you cannot just apply on your Somebody else's behalf without their knowledge.
Can I put a Family Member on my Life Insurance Policy ?
As above - UK Insurance rules state there must be an insurable interest between yourself that Family member to add them to your life insurance policy. The family member can always arrange a policy for himself.
Can I get Life Insurance Policy for a Business Partner ?
Yes - But only as mentioned if there is still an insurable interest between you & your Business Partner ie; your business would lose out financially. Note that they could always arrange a policy for themselves. But they must consent to arranging the life insurance policy & with their full knowledge.
Can I get Life Insurance Policy for a 2nd Cousin ?
Yes - But only as mentioned if there is still an insurable interest between you & your 2nd cousin eg; you perhaps have a joint mortgage or loan. Note that they could always arrange a policy for themselves. But they must consent to arranging the life insurance policy & with their full knowledge.
Can an unrelated Family Member be my Life Insurance Beneficiary ?
Yes they can - if you wish to. Either your unrelated Family Member can own your life insurance plan directly; classed as life of another [ see comments above re Insurable interest ]. Note if you had a split up though, this can cause issues with the insurer having to undue this arrangement & may require additional legal costs by you seeking specialist advice. The alternative is to put the policy into trust where your unrelated Family Member is either one of or the sole beneficiary.
Can Somebody else than Family - be my Trustee on my Life Insurance Policy ?
Yes they can - if you wish to. If you put the policy into trust where they are either one of, or the sole beneficiary. Either they can be sole Trustee or have 2 Trustees ideally. Note again if your family split up though this can cause issues with the insurer having to undue this arrangement & may require additional legal costs by you seeking specialist advice.
Being a sibling means you may not appreciate the legal implications for Insurance. Likewise the various challenges that may come looking after loved ones if they are critically ill or die; Let trying to get life insurance on a family member hopefully not be another great challenge. Either way please approach us for friendly Professional Help.
LIFE INSURANCE POLICY FOR SOMEBODY ELSE - PRODUCTS REVIEW
MORTGAGE PROTECTION - for Someone Else
Designed to cover a repayment or business mortgage on death or critical illness as it decreases during the plan term.
LIFE INSURANCE - for Someone Else
Offering a family or business protection lump sum if the policy holder dies or is diagnosed with a terminal illness during the term or whole lifecover. Policies can be made joint or seperate.
FAMILY INCOME BENEFIT INSURANCE - for Someone Else
CRITICAL ILLNESS INSURANCE - for Someone Else
Helps ease financial worries if you are diagnosed with a critical illness as specified by the Insurance Company.
CHILDREN'S CRITICAL ILLNESS COVER
Helps ease financial worries if your child is diagnosed with a critical illness as specified by the Insurance Company.
INCOME PROTECTION - for Someone Else
Providing security by way of an income if you are off sick or have an accident.