Can You Buy Life Insurance as a Gift for Someone Else?

I will admit that it may not be the most common kind of gift; however, life insurance may be one of the most thoughtful gifts that you could give.

People ask all the time if you can gift a policy, and the answer is yes. You are giving someone some financial security for themselves and/or their families sometime in the future. Once you have gifted the policy to the other person, then they become the owner of the policy. You will still need to check out if you will be required to pay the taxes on the policy with a tax professional. The rules on taxes can vary from situation to situation, so do not assume that you will not be held responsible for the taxes.