Can I Buy Life Insurance on My Significant Other?
Buying Life Insurance on Your Boyfriend or Girlfriend
As stated above, unmarried couples in long-term relationships who want to purchase life insurance on one another will need consent from their partner.
Also, it’s likely that they will need to show proof of insurable interest to the life insurance carrier.
Examples of insurable interest can include:
Both individuals being named on a lease
Jointly owning a home or business
Debts naming both individuals (such as a car loan)
Having children
There are situations in which it may prove difficult or even impossible to buy life insurance on each other. For example, if you and your significant other:
Have only been dating for a short period of time
Do not live together
Are not financially dependent on each other
» Calculate: Life insurance needs calculator
Buying Life Insurance on Your Fiancé/Fiancée
Being engaged shows a higher level of commitment and financial dependency than dating—in the eyes of the life insurance company. It’s typically less of an issue for engaged couples to buy life insurance on one another.
Some life insurance companies will want to know that a wedding date is set, but this isn’t always required. But, again, just buying a policy yourself and naming your fiancé/fiancée as beneficiary is almost always an easier process.
Beneficiary definition: The person or entity that receives the policy payout if the insured dies
Buying life insurance on your spouse
With married couples, it’s obvious that they have insurable interest in one another. They typically live in the same house, both contribute toward bills, and may be raising children together.
» Compare: Comparison shop the best life insurance rates
Naming your S.O. as a beneficiary is an easier route.
Rather than having someone else applying for a policy on you, it’s generally an easier approval process to buy a life insurance policy on yourself and name your significant other as the beneficiary.
Buying Life Insurance on Yourself
(easier!)
Who is the owner?
You
Who is insured?
You
Who is the beneficiary?
Your significant other
compared to
Significant Other Buying Life Insurance on You
(harder!)
Who is the owner?
Your significant other
Who is insured?
You
Who is the beneficiary?
Your significant other
However, there is another option.
You could name your estate as the beneficiary of your life insurance policy. Then draft a will that states how you wish to divide your assets and you can name your significant other as the beneficiary.
Keep in mind that if your estate is named the beneficiary, access to the death benefit proceeds is delayed because the money must go through probate.
If you name your estate as your beneficiary, you can go back and change it to your significant other once it’s active. A policyowner can change their beneficiaries at any time.
However, wait a few months to change it. If you change it right away, the life insurance company is likely to investigate and make it a process.
» Learn more: How to Designate Beneficiaries on Your Life Insurance Policy
6. How to Buy Life Insurance on Your Significant Other
If you’re looking to get life insurance on your significant other or name them as beneficiary of your policy, Quotacy can help. We’ve helped many married and unmarried couples purchase life insurance.
Start the process by running a free and anonymous term life insurance quote.
If you want to buy life insurance on your significant other, be sure to complete the online quote and application using their information.
Tip: When filling out your application, use the titles “partner” or “significant other” instead of “boyfriend” or “girlfriend”.
After running quotes, when you’re ready to apply you will be brought to a page that looks like the screenshot below.
As you can see it asks that you fill out the form with the insured’s information (your significant other.)
Once the application has been submitted, the life insurance company will need to personally contact them (the insured) to verify application information and, if necessary, to schedule the medical exam.
You can always contact us directly if you want one-on-one assistance.
Conclusion
Remember, you can’t just buy life insurance on anyone. Consent is required and insurable interest needs to be proven.
If you believe life insurance is important for your significant other, but he or she doesn’t agree, you can’t just buy it on them anyway without their knowledge.
If you’re having trouble getting them to understand the importance of life insurance, check out our blog post: How Do I Get My Spouse to Buy Life Insurance?
Ready to see what you’d pay for life insurance? Start with a free quote today.
