Who Can Take Out A Life Insurance Policy On Someone Else? 
To take out a life insurance policy on another individual you must have insurable interest . This means that you may face a financial loss upon the death of an individual . You must also have the consent and knowledge of that individual or parent of that individual . Common examples would be an adult child taking a policy out on their parents , an employer taking a policy on a key employee , a family member such as brother or sister taking a policy out on a sibling , a grandparent taking a policy on a grand child or some companies will even allow same-sex couples to take policies out on each other as long as insurable interest can be shown . 