Life insurance is one of those things that you know you need, yet again you put off getting. Sometimes, we understand the value of securing coverage, but our loved ones don’t. At One Stop Life Insurance, we have many clients ask us the same question: “Can I buy life insurance on my boyfriend?” The answer is: “Yes”. However, there are few things that need to be addressed before you can do it. In this post, we will include the 4 factors that you need to consider when getting life insurance on your boyfriend.
You can always get an instant quote for his life insurance, by completing the quote form on the page. And if you want to get in touch with us, simply send us an e-mail or give us a call.
It is a no secret that more and more people chose to live together, without tying the knot. For one reason or another, there are more single people today vs. married couples. According to an article by CBS Chicago:
“For the first time, there are more single people in the United States and married people, according to a new research report…. While the divorce rate is a factor, it appears that many people are choosing to remain single or perhaps waiting longer to get married.”
This trend prompted us to put together a guide and help people protect their loved ones.
1. When looking for life insurance on your boyfriend, one of the first things that need to exist is insurable interest
What is an insurable interest? Basically, insurable interest is a financial reason why you need the coverage. In other words, would you suffer any financial loss from the death of the insured? You can only buy life insurance on someone whose death will have a financial impact on you.
Insurable interest is a major criteria insurance companies are looking for when reviewing an application. Please be prepared to answer this question. We would advise you to include the information in the initial application. This will ensure faster process. Below are some of the examples of insurable interest you might have
- You have a child together
- Have a loan together (mortgage, car loan and etc.)
- Own and run a business together and etc.
2 Another thing you would need when looking for life insurance on your boyfriend is his permission and compliance
We’ve been asked: “Can a person get life insurance on someone else, without their knowledge?” The answer to this question is: No. The insured (the person the insurance company is covering and basing the policy) would need to sign the application and go through the process. He would need to answer questions about his medical history, family history, and lifestyle. He would also need to sign an authorization for the insurance company to review his medical records and complete a medical exam.
One thing to consider is that if your boyfriend qualifies, you might be able to select a non–medical exam policy. This will definitely speed up and simplifies the process. You don’t have to worry about your boyfriend not going through with the medical exam or postponing it.
3 Another thing to keep in mind is that your boyfriend needs to qualify for life insurance.
Life insurance companies will underwrite his medical history, prescriptions, family history and lifestyle to determine eligibility. This is a standard procedure when applying for life insurance policy. You would also need to consider the needed coverage amount and type of policy.
4. Another part of the process is to discuss ownership and premium payments with your boyfriend.
Now, we would need to first clarify what constitutes to be an owner of a life insurance policy and how is that different from an insured in a life insurance policy.
The owner is the person to whom the policy is mailed to. He or she can make any policy changes. For example: update the address, change the billing mode, decrease coverage amount. One of the most important decisions an owner can make is who will be the beneficiary of the policy. An owner can change the designated beneficiary without asking the insured for permission.
The owner is responsible for the premium payment.
The insured, on the other hand, is the person who the life insurance carrier covers. The policy rates are based on his or her health and lifestyle. If the insured passes away, the carrier will pay out the death benefit to the beneficiary.
Please keep in mind, that the insured can also be the owner of a life insurance policy. There are many cases where the owner is someone other than the insured. This is when the owner needs to provide the insurable interest and why he or she feels the need to own a policy on someone.
In conclusion, you can buy life insurance on your boyfriend, if you have an insurable interest on him, his permission and he qualifies for the coverage. Get in touch with us and we will walk you through the process. We can answer any questions and help you select a product that fits your needs and budget.