Can You Buy Life Insurance On Another Person? 
Yes . You can buy life insurance on another person when several factors are met : 1 -RRB- They agree to allow you to take out a life insurance policy on their life 2 -RRB- There is an insurable interest for the coverage - -LRB- e.g. buying coverage on a family member or setting up a key-man or buy-sell agreement between business partners -RRB- 3 -RRB- The policy being applied for is suitable to the need - there are limits to how much coverage can be taken out a person -LRB- generally 20-30x income - exact maximum coverage allowance varies by carrier -RRB- 