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Take out life insurance for someone else

Being responsible for another person involves many things, both moral and financial. Regarding this last point, there are various solutions that will allow you to lighten the burden of liability, including life insurance. It is you possible to take out life insurance for another person, you knew it? Of course, drawing up this contract requires some serious steps, but the result is worth it. So here is everything you should know before taking out life insurance for another person.

Life insurance, a matter of people

First, you will need to determine who you want to insure. In jargon, this person is called “the insured.” Life insurance can be taken out for yourself, of course, or for someone else. By doing so, you are securing the life of someone of interest to you. For example, you have the right to take out life insurance for spouses, child (yours or that of the spouse), grandchild, parent, grandparent, the caregiver, your employees or any other person whose life or health presents to you a financial interest (as an associate) or a moral interest (like a close friend). If you wish to take out life insurance for someone who does not fall into either of these categories, you will first need to obtain written permission.

When it comes to compensation, you must also choose who will benefit from life insurance in question. Again, this may be you, especially if you insure the life of another person or a designated person. The beneficiary can also take the form of an organization or a person who does not yet exist, for example, if you expect to have children in the near future. The only condition: the beneficiary must have a link or a marked interest in the insured. In the event that no beneficiary is specified in the contract, it is the policyholder, therefore you, who will be automatically compensated.

Approach

You are still wondering why it is important to insure the life of another person. Here are some very simple reasons:

  • Protect relatives financially by death case ;
  • Maintain and support the standard of living;
  • Bequeath sums in heritage ;
  • Protect partners following a redemption of units ordisability one of them;
  • Ensure that funeral costs are covered;
  • Exonerate those close to thewealth tax upon death.

So, start by setting your goals by making a detailed outline of your life insurance needs. This will specify the type of product that will be most suitable for you. It is very important to do not make a false declaration, both with respect tostate of health of the insured that of his true age. If there is any irregularity or doubt, the insurer can simply cancel the contract midway. If you don't talk to the person or are uncomfortable asking questions, answer as much as you know and in all honesty.

After evaluating the questionnaire, you will get confirmation from the insurer. Life insurance begins to protect you as soon as the insurer accepts your offer. However, to do this, there must have been no modification to the contract, no change in the state of health or the situation of the insured and you must have paid the first payment of premiums.

Like when you insure your own life, the cost of insurance varies depending on the type of product and must be paid as stipulated in the contract. Interestingly, the amount of insurance paid by the insurer is still tax free, that's why so many people subscribe to this solution.

Do you need expert advice for a loved one? Feel free to communicate with a member of our team. InfoPrimes will certainly have access to the product you need.