It's an awkward issue on multiple levels, and there never seems to be a good time to address it. But if you care about someone, then you may find it necessary to somehow muster up the courage to ask, "Do I need to take out a life insurance policy on you?"
The fact is, the death of certain people in your life could leave you in a financial bind along with your emotional crisis. So it's wise to plan ahead and have protections in place now in case the unthinkable unexpectedly occurs. Here are ten questions to answer when considering the purchase of a life insurance policy for another person:
1. Does the person want it?
In almost every case, you will not be able to obtain a life insurance policy for someone unless he or she provides consent. A major exception is if you are buying a policy for a child under the age of 15.
2. Does the person need it?
If your loved one doesn't have any debt and no one else is financially dependent upon him or her, then life insurance may not be necessary as long as the individual has enough money in savings to cover any funeral costs.