LIFE INSURANCE POLICY - FOR A FAMILY MEMBER
If you are someone's Sibling - you probably have other things on your mind than thinking about getting a Life Insurance policy. However, maybe having loving responsibilities as a sibling means you should still consider looking at the peace of mind Life Insurance or Critical Illness will do to help protect a family if you have one or mortgage.
Life Insurance & Insurable Interest
Insurable interest means - that you could be adversely affected financially if that person ( your Family Member ) who is insured died.
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 my Sibling - 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
Can I get a Life Insurance on my Brother without him knowing ?
No - both parties must consent to this arrangement ie; you cannot just apply on your brothers 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 a 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 Cousin ?
Yes - But only as mentioned if there is still an insurable interest between you & your 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 my Family Member be my Life Insurance Beneficiary ?
Yes they can - if you wish to. Either your Family Member or Sibling can own your life insurance plan directly; classed as life of another [ see comments above re Insurable interest ]. Note if you had a 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. The alternative is to put the policy into trust where your Family Member is either one of or the sole beneficiary.
Can a Family Member be my Trustee on my Life Insurance Policy ?
Yes they can - if you wish to. If you put the policy into trust where your Family Member is 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 FAMILY MEMBERS - PRODUCTS REVIEW
MORTGAGE PROTECTION - for Family Members
Designed to cover a repayment mortgage on death or critical illness as it decreases during the plan term.
LIFE INSURANCE - for Family Members
Offering a family 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 Family Members
CRITICAL ILLNESS INSURANCE - for Family Members
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 Family Members
Providing security by way of an income if you are off sick or have an accident.