Can I take out life insurance for other people?
Life insurance is a common product in the world. It is a guarantee to protect the insured and his family members in case of an accident, which unfortunately may occur at an unexpected moment.
However, before insuring a loved one, the following question is often asked: can I take out life insurance for another person without being an insured or a beneficiary? The answer is yes. However, there are some nuances that are described below.
Under what conditions can I take out life insurance on behalf of another person
Law No. 50 of October 8, 1980 on the insurance contract provides that if a person takes out life insurance on behalf of another person and pays the premium, he must have the express consent of the insured person or prove that the insured person is aware of the existence of the insurance or other benefits.
Therefore, no life insurance is permitted without the knowledge of the insured. In the case of minors, the permission of their parents or legal representative must be obtained. Thus, Spanish law allows life insurance on behalf of a third party if the insured knows of the existence of the insurance (and can prove it) or has given written consent; otherwise, it is not possible.
Furthermore, it should be noted that this provision applies not only to family members, but also to non-family members. Therefore, it is not possible to insure parents or children without the necessary authorization.
Can a person be insured and at the same time be a beneficiary of another person’s insurance
Can a person be insured and at the same time be a beneficiary of another person’s insurance benefits? Only with the express consent of the insured. Otherwise, the insurance contract is not valid.
Thus, while the insured subscribes the insurance contract, he/she may be the beneficiary and policyholder of another person, such as his/her spouse or parents. In this case it is a third party insurance and the interested party is not the insured and cannot change the beneficiary of the policy. It is important to note that it is the insured who can change the beneficiary of the insurance policy at any time.
In any case, it is important to note that in order to take out a life insurance policy, the insured must undergo a questionnaire and, in some cases, a medical examination. In reality, no policyholder is exempt from this procedure, and it is up to the insurance company to decide whether or not to carry it out. However, it is the insured himself who answers all the questions put to him and undergoes the examination.
When is the best time to take out life insurance
There are therefore very important reasons for taking out such insurance. And as inflation continues to rise every month, the sooner the better, and there are now excellent offers from a wide range of insurance companies. We invite you to visit our comparator and find the insurance that best suits your needs.
Remember also that it is in your best interest to take out life insurance with an insurance company, as life insurance with a mortgage bank in Spain can cost up to four times more than with a real estate company directly. This is the conclusion of a major benchmarking study between financial and insurance providers, conducted by Inesdata and the consulting firm Global Actuarial.
In other words, the advantages of life insurance are very significant. The answer to the question of whether a life insurance contract can be taken out on behalf of another person is «yes», provided that the consent of the person concerned is explicitly obtained. This is true regardless of who is the beneficiary and the insured and who pays the premiums.