Buy Term Life Insurance

Yes, you may be able to purchase a life insurance policy on the life of a relative.

You can usually get life insurance on a relative, but even with relatives, some insurable interest must exist between you and your relative in order for you to buy life insurance on the relative.

For example, Nephew Steve cannot take out a life insurance policy on Aunt Amy unless Amy has been living with Steve, if Steve has been contributing to her financially, if Amy loaned Steve some money, or some other reason that monetary award is justified between the two relatives.

If a close relative and a smaller amount of life insurance coverage, just the family tie can make the life insurance allowable.

Basically, insurable interest means you stand to lose financially if the person you wish to insure were to die, or you rely on that person for financial support.

Here's how you may buy life insurance on a relative.