Can I purchase Burial Life Coverage For someone Else?

The concept of senior life insurance has been around for many years and can be useful in a wide variety of situations. In our agency, one of the most popular types of senior life coverage is a category called burial insurance, also known as final expense insurance.

These types of policies are generally smaller in value, with the policy size ranging from $3,000 to $50,000 depending on the insured’s needs. The underwriting requirements are usually minimal, making these policies easier to obtain. The insurance company will ask a series of health questions, typically pertaining to more significant health conditions within the past 24 to 36 months. Oftentimes the application can be approved the same day it is submitted.

Prospective buyers for burial insurance may differ from buyers seeking other types of insurance coverage. Quite often the prospective buyer is seeking insurance on behalf of another person, such as an elderly parent, spouse, or family member.

As this situation becomes more common, we often are asked, “Can I purchase a policy for someone else?” The answer to that question depends on what the buyer means by “purchase.” Let’s take a look at two scenarios in order to better understand how to proceed with purchasing a policy for someone else.

The first scenario is when an individual intends to pay for the policy selected by the insured. The insured is involved in selecting the policy, answering the health questions, and signing the application. Most insurance companies do not have a problem with someone else paying for the policy. The payer simply would have to sign a form authorizing the payment process.

The second scenario is more complicated as it involves an individual who wants to purchase a policy without the insured’s knowledge or involvement. This type of purchase will not be allowed. The insured is required to answer the questions and sign the application, because insurance companies use the answers to health question to assess risk.

However, if the concern is simply that the insured is not physically able to complete the process unassisted due to a hearing impairment or language barrier, most companies have processes in place to accommodate this. Interpreters can be hired for the hearing impaired as well as people who do not speak English.

Hopefully, this information clarifies some of the factors to be considered when purchasing a senior life insurance policy. It’s important that the potential insured be involved in the process and understand the motivation for purchasing a policy.

If you would like quotes on whole life insurance, burial insurance or would like to speak to one of our licensed insurance professionals, you can contact us at 866-699-1884. We would be glad to assist you through the process and are licensed throughout the country. Let us know how we can help.