Taking out life insurance on your parents or family member

If you’re thinking about taking out life insurance on your parents or other family member, for example, your spouse, you would need to prove that you are related – either by blood or marriage – to the person you’re buying the policy for.

Frequently asked questions

You can take out a life insurance policy on your parents providing there is a financial loss that would be passed onto you if they died. You must be eligible to take out a policy yourself if you want to do this.

No, you would need their permission and most insurers would want to see a medical report from the insured person.

If that person hasn’t told you they had life insurance then you will need to do your own research. You can check their bank statements to see if any regular payments were made to a life insurance company. You can speak to their most recent employer to see if they were a member of any group life insurance scheme. You can speak to their solicitor to see if any payments were identified in their will. You can also try the Unclaimed Assets Register to see if that person has any unclaimed policies.

You can opt for joint life insurance or two separate policies.

Many life insurance policies are level term, which means the level of cover stays the same over the term. But there are other types, such as decreasing term life insurance. It offers cover that decreases over time, so can be used to cover debts that also decrease (such as repayment mortgages). Because the cover reduces, premiums tend to be lower than with level term insurance.

You can take out a life insurance policy on your parents providing there is a financial loss that would be passed onto you if they died. You must be eligible to take out a policy yourself if you want to do this.

No, you would need their permission and most insurers would want to see a medical report from the insured person.

If that person hasn’t told you they had life insurance then you will need to do your own research. You can check their bank statements to see if any regular payments were made to a life insurance company. You can speak to their most recent employer to see if they were a member of any group life insurance scheme. You can speak to their solicitor to see if any payments were identified in their will. You can also try the Unclaimed Assets Register to see if that person has any unclaimed policies.

You can opt for joint life insurance or two separate policies.

Many life insurance policies are level term, which means the level of cover stays the same over the term. But there are other types, such as decreasing term life insurance. It offers cover that decreases over time, so can be used to cover debts that also decrease (such as repayment mortgages). Because the cover reduces, premiums tend to be lower than with level term insurance.

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