Wanting the best protection for your family is something that we all have in common. We only want the best for all of our loved ones. Sometimes you might want to protect them, even if they're reluctant to get that protection. In this situation, your next question could be ‘well can I buy life insurance for them?’ While this might seem like a straightforward thing to do there are definitely a few things to bear in mind.
The short answer to this question is yes, in some situations you can buy life insurance for someone else. For example, if you have a child, you might consider choosing optional Children’s Cover alongside your own life insurance policy.
However, there is one major factor in determining whether or not you can go ahead with getting life cover for another person. When buying life insurance for someone else it is common for life insurance companies to require that you prove that you have ‘insurable interest’. Put simply this means that if the person was to pass away you would be financially liable for their debts. So, in most cases in order to get the insurance for someone else, you would have to provide evidence that you would financially suffer as a result of the person passing away without insurance.
Providing evidence of an insurable interest doesn’t apply to every situation. One situation is with your spouse. In the UK, if you’re married or in a civil partnership, you won’t have to prove insurable interest. This means that the option is there for you to get two separate policies. However, normally an option for people who are in these kinds of relationships is getting joint life insurance. With Smart Guaranteed Life Insurance, you can add your partner when getting life insurance online through our website. Getting life insurance in these kinds of relationships could make a lot of sense. Generally, people who are married or in a civil partnership live together and might even share debt. Getting a life insurance policy could mean that there is financial help there if one of them were to pass away.
Explaining the importance of life insurance to your parents can be a tricky subject. After all, getting life insurance is about what happens after they would pass away. Even when you do sit down and explain how it could help, they could find the process intimidating. One solution for this is getting life insurance on their behalf. In order to get life insurance for your parents, you will have to provide evidence of insurable interest and get their consent. It can be an important thing to do as you could be liable for their debts or even funeral costs. The last thing you want when your parents pass away is to have to think about debt. Life insurance is a way for them to provide financial help for their loved ones if they pass away.
This situation is another example where you will have to provide evidence of an insurable interest. It may sound like a bit of a strange one, especially if you have a grown-up sibling. However, there are plenty of people out there who might have gone into business with their siblings. This means that if they were to pass away, the surviving sibling would be liable for the debts of the business. Getting a life insurance policy on their behalf could potentially give you a lot of financial help if they passed away. Again, you should bear in mind that you may need to get their consent in order to secure the life insurance policy.
Managing your family’s finances can be a tricky business. There can be a lot of things to balance and making sure everyone is looked after can be a tough job. That’s why you should know that Smart Insurance is here to support you through the process. We can help you get all of the information you need and help you secure a life insurance policy. You can get in contact with our UK-based call centre and talk through your options today.