What Is Third Party Life Insurance?
The Usual Situation: Insured + Owner + Payer Are the Same
In most cases, when you’re shopping for life insurance, you want to insure yourself in order to provide for your loved ones as your beneficiaries. You get a quote, you take a medical exam (unless you buy a non-med policy), you sign the insurance contract, and you start making payments. Easy, right?
In this scenario, you are both the insured, the owner, and the payer, responsible for making the premium payments. The only other person involved is your beneficiary, who will get the income-tax-free death benefit when you pass away. There’s no question of insurable interest since you’re buying the policy to cover your own financial obligations.
If this is your situation, you’ll probably never ask the question, “What is third party life insurance.” Your experience will be much more straightforward, with less paperwork!
Looking for some help when it comes to life insurance? We’re here to help! Call us at (800) 521-7873 or email us at info@lifequote.com and let us give you the answers, guidance, and quotes you need!
