Life Insurance is typically available to individuals who meet certain criteria, and these criteria may vary depending on the insurance company and the specific type of life insurance policy. In general, the following individuals can purchase life insurance:
- Adults: Most life insurance policies are designed for adults who are at least 18 years old. Some companies may have age limits for purchasing certain types of policies or may require a legal adult to be the policyholder.
- Insurable Interest: To purchase life insurance on another person's life, the policyholder must have an insurable interest in the individual being insured. This means that the policyholder must demonstrate a financial interest in the insured person's well-being. For example, a spouse can have an insurable interest in their partner's life because they rely on their income.
- Health Requirements: Life insurance companies often require applicants to undergo a medical examination or answer health-related questions to determine their insurability. The applicant's health, age, and lifestyle can affect the cost of the policy and whether they can get coverage.
- Financial Capacity: Life insurance policies typically require the policyholder to pay regular premiums to maintain coverage. The policyholder must have the financial capacity to pay these premiums. If they fail to make payments, the policy may lapse.
- Legal Capacity: The policyholder must have legal capacity, meaning they must be of sound mind and not under any legal restrictions that would prevent them from entering into a contract.
- Beneficiary Designation: The policyholder must specify one or more beneficiaries who will receive the death benefit upon their passing. These beneficiaries can be individuals, organizations, or entities.
- Consent: In some cases, a person may purchase life insurance on their own life or the life of a minor for whom they have guardianship without requiring consent from the insured person. However, purchasing life insurance on someone else's life often requires the insured person's consent.
It's important to note that different types of life insurance, such as term life insurance, whole life insurance, or universal life insurance, have different features and eligibility requirements. Additionally, the cost of life insurance can vary based on factors like age, health, and the desired coverage amount. It's advisable to consult with a licensed insurance agent or financial advisor to help you navigate the process and select the right policy for your needs.