If I purchase a life insurance policy for my adult kids in Penna am I the actual owner of the policy?What rights do I have as the owner?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jun 5, 2010

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Horsham, PA

Asked on 06/05/2010

If I purchase a life insurance policy for my adult kids in Penna am I the actual owner of the policy?What rights do I have as the owner? If I purchase a life insurance policy for my adult kids in Penna am I the actual owner of the policy?What rights do I have as the owner?

Answer given on June 10, 2010

Typically, the insured person is the owner of the policy.  Paying for it, per se, does not make you the owner of the policy.  Basically, the owner controls what happens with the policy, without the consent from any other party.  The owner of the policy gets to decide who the beneficiary will be, make any changes to the policy, borrow money from the cash value of the policy, choose a cettlement option for the policy, and change onwership of the policy in the future. Since your children are not minors, I would venture to say that they are the owners of their respective policies, unless this was decided differently at the time you took out the policies. 

You can pay for life insurance policy on another person and not own it, just as if you could buy them a car.  Now, what type of insurance you buy and how you pay for it are all up to you.  If you decide to pay it all up front ( paid in full ), they would own the policy outright.  If you made the initial payment to get it started, then  continued to pay monthly premiums on it, they would still own the policy. 

There are other circumstances where the insured is not the owner ( such as in a business relationship ) but I don’t think that’s the case you are describing above. 


Hope this helps.


IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption