Life Insurance FAQ's

Yes, you may be able to buy a life insurance policy on your brother if you have an 'insurable interest" in your brother.

Insurable Interest means that there is some sort of financial link between you and your brother. Either you rely on him for some financial support, or you may suffer financially if he were to die.

Your brother would, of course, need to cooperate in the process, sign the application for life insurance and provide medical information.  There are many circumstan...

Anyone can own their own life insurance policy, when they are the insured person of the life insurance policy.

Sometimes people think that someone else should own their life insurance policy for tax purposes, when the possibility of their estate ever being large enough to incur estate taxes is nil, and life insurance does not incur income taxes.

But there are legitimate situations (for tax purposes and otherwise) where another person owning the life insurance policy on your ...

Yes, life insurance policies may cover skydiving accidents.

If you got a life insurance policy that did not explicitly exclude death related to skydiving, the life insurance policy will pay for death that was caused by a skydiving accident.

However, this is taking into account that you did not lie about your past and future skydiving intentions on your application when you applied your life insurance policy.

The life insurance company has a two year contestability period calle...

Yes, you may be able to qualify for life insurance if you have Grave's Disease.

If your Grave's Disease is in remission, or has caused hyperthyroidism that is is well controlled by medication, Grave's Disease will not make much impact on the rate you are charged for your life insurance policy.

If combined with other health conditions, or if you have some health complications from Grave's Disease, you might be rated up or even turned down for some life insurance policies.

Howe...

Corporate owned life insurance (COLI) policies have been used for many years, but it's purpose has changed over the years.

It began as a way to provide necessary money to a business when a key employee died. The death benefit allows the employer to recoup some of the loss of earnings incurred when a productive employee dies, and provides money for recruiting and training a replacement.  

For many years, it was a common practice for an employer to take out life insurance on a...

As long as you have an insurable interest you can buy a life insurance policy on another person.  That interest need only be present at the time you purchase the life insurance policy.  If that interest ceases you can still own the life insurance policy on the other person's life. 

In addition, you may need the person you want to insure to sign the application for life insurance and answer some health questions.

There are many scenarios where this is practiced and generally is...