Can Someone Get Life Insurance On Someone Else? 
Yes , when someone gets life insurance on someone else , the person who purchased the policy is the policy Owner . The other person whose life is being insured , is called the Insured . It is the Owner who makes the decisions about the policy , such as naming the beneficiary , which bank account to pay the premium from , etc. . Obviously , you would want everything to be above board if you were going to be the Insured in a policy owned by someone else . One reason someone might want to own a policy on someone else 's life is if they would suffer a great loss if that person died . E.g. . The Insured owed the Owner a great deal of money , and the life insurance policy would repay that debt if the borrower died . Or the Insured owned the home where the policy Owner was living , and that policy would enable the policy owner to purchase the home when the Insured person died . Unless there is a very close family tie , this type of insurable interest in actually required in order to take out a life insurance policy on someone else . 