Who Can Get Life Insurance on You?

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Only certain types of people are able to take out a life insurance policy in your name. Find out who can get life insurance on you with help from a financial industry expert in this free video clip.

Part of the Video Series: Life Insurance Lessons
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Video Transcript

Hi, my name is Phil Cioppa. I'm the host of the nationally syndicated radio talk show, "The Phil Cioppa Show." Who can buy insurance on your life? Well, that's a very good question, and one that's often asked. The person who can buy insurance on you has to have what we call a vested interest in you. So it could be a parent, it can be a child, it can be a spouse, it can be a relative, two business owners that are in business together, one can buy insurance on the other. It depends upon whether or not there's a qualified vested interest in another person. Not any Tom, Dick or Harry can walk off the street and buy an insurance policy on you. There has to be a reason, and you have to prove that reason because one of the problems is people might buy that policy and then try to sell it in what's referred to as a viatical settlement. In other words, they will make money off of your life by selling your policy out from under you. So insurance companies have really cracked down on this, and they are very careful to make sure that you can prove a proper relationship before you can buy insurance on another person's life. Thank you.

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