Benefits Lesson

Can you purchase Life Insurance on Someone Else

Did you know you can buy a life insurance policy on the life of someone else? If you have an insurable interest in someone, you can ensure their life with their permission, of course. For example, you may purchase and own a policy on your spouse because if they were to pass away, your life might be drastically different financially. Business hours can also purchase life insurance on important employees. This is called key person policy.

Lesson Script

What This Video Covers

Did you know you can buy a life insurance policy on the life of someone else? If you have an insurable interest in someone, you can ensure their life with their permission, of course. For example, you may purchase and own a policy on your spouse because if they were to pass away, your life might be drastically different financially. Business hours can also purchase life insurance on important employees. This is called key person policy.
Insurance Terms to Know

Market Value

Market value is the price property would likely sell for in the open market and may differ from insurable replacement cost.