Did you know that you can take out a life insurance policy on someone else.  You pay the monthly premiums for the policy, their life is insured against death and if they die you receive the lump sum payout.

However, there has to be a reason you are insuring someone else’s life.  You can’t just decide to take out a life policy on someone because you think they are looking a little under the weather.  The relationship between you, the policy holder and the life assured is called the “Insurable Interest”.

Here are two examples of when it is appropriate to insure someone else against premature death:

1.  You are recently divorced and are receiving maintenance payments from you ex spouse to pay for the up bringing of your children.  If your ex spouse was to die before the children are grown up how would you cope without the maintenance?

2.  You have been gifted a sum of money which is potentially exempt from Inheritance Tax if the person giving the gift lives for 7 years (sometimes called a PET).  However, if they die during the 7 years from the date of the gift you might then have to pay Inheritance Tax.

Life of Another life insurance policies are very specialised.  Please contact us with the details and will will find the lowest, discounted premium from our panel of insurers for you.