Can I Buy Senior Life Coverage For Someone Else?
When it comes to senior life insurance policies, it’s not uncommon for more than one individual to be involved in the purchasing process. Someone may be purchasing a senior life plan for an elderly parent, a spouse, or another family member. Another person may be considering a personal policy but has asked a family member or close friend to assist in the purchasing process.
Regardless of the situation, we often are asked, “Can I purchase a senior life insurance policy for someone else?” Most people asking this question simply want to buy a policy large enough to cover the insured’s final expenses or burial cost, because if the insured passes away without a policy, the financial burden will fall on those left behind.
We completely understand the reasoning. So let’s look at two scenarios where this question can be addressed.
In the first scenario, the insured is involved in the purchasing process. However, another individual will be paying the monthly premium. This situation is not a problem at all because the insured is aware of the policy, personally answers the application questions, and signs the application. The individual paying for the policy is required to sign a form authorizing the payments to be drafted out of their bank account.
In the second scenario, an individual wants to purchase a policy without the insured’s knowledge or involvement. Insurance companies will not allow this type of purchase because the application must be completed by the insured. The insured will sign the application stating that the information is true.
This scenario often arises when an individual does not want to have the conversation regarding senior life insurance with the insured. We realize this can be a difficult and sometimes emotional conversation. However, it is important to have the conversation now rather than avoiding it altogether. Simply explain to the insured the reason for the policy and why it is important. Hopefully, the insured will understand and agree to participate in the process.
We often encourage our clients to have family or friends to participate in the purchasing process for life insurance. However, it is important to understand the roles of the participants. The insured must be involved in the process, but another individual can assist in the payment portion.
If you have questions about this information or would like to better understand your options for senior life insurance or a burial insurance policy, you can speak with one of our agents. We have agents licensed throughout the country, and we’d be glad to walk you through the process.