Can I buy life insurance for someone I’m in a relationship with?

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I am currently living with my significant other and am in a non-martial relationship. Am I able to buy life insurance on this person or have my partner be listed as a beneficiary?”

Asked July 22, 2015

1 Answer

The answer to your question will depend on the laws of the state you live in. Insurance is regulated on a state-by-state basis, and some states allow domestic partnerships, but you should be safe to name any beneficiaries you choose. Even if your state does not honor domestic partnerships, you may find that your insurance company does.

For many insurance companies, it is easier to simply honor domestic partnerships in all states rather than having to design policies that operate vastly differently based on nothing more than the definition of a legal marriage. Even if the state itself does not honor such partnerships, the insurance industry is able to choose whether they wish to or not. Life insurance is a financial contract between parties, and your choice of beneficiary is completely up to you, even if it includes a non-living entity such as a charity, park, or pet.

In order to purchase life insurance on someone other than yourself, you must be able to show an insurable interest. In states where domestic partnerships are legal, you have the option of insuring your partner without question. Where state law does not support domestic partnerships, the insurance company will decide whether you can prove an insurable interest. Typically, living with a person and sharing household bills and living space is sufficient insurable interest, but the exact requirements will vary by insurance provider.

If you have a particular company you want to buy a policy from, it may be best to ask the company directly. For instance, if you have several insurance policies with the same company, that company may be willing to underwrite a policy for your domestic partner as a matter of customer courtesy. There is no guarantee that existing customers will get approved over new applicants, but if you are, the policy will sometimes include a discount for customer loyalty.

Answered August 5, 2015 by Anonymous

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