Can You Take Out A Life Insurance Plan On Anyone? 
You can take out a life insurance plan on anyone with whom you have an insurable interest . This means that the life of that person represents a financial benefit to you , or on the converse , that the death of that person would cause you a financial loss . There is also a degree to which insurable interest is determined by `` a substantial interest engendered by love and affection if closely related by blood or by law . '' This might allow you take out a small life insurance policy on your grandparents , but unless you invest in the care of your grandparents , there would not be insurable interest to take out a large policy on them . 