Other people besides you can take out a policy on your life. However, if another person wants to do this, they will need your agreement and an explanation as to why they are taking out the insurance. (i.e. because they are a business partner). Also, parents are allowed to take out policies on young children. The argument in favor of this is that in the horrible event of a child's death, a small life insurance policy could give you the money you need to take some time off from work in order to cope with the situation. Further, proponents say that there is often a rider in life insurance policies for children that allow your child to add more insurance coverage at a later date, say a given age or at a life changing event like marriage. In other words, when your child is healthy and has no medical problems, and you have purchased a life insurance in their name, when they reach the age of +20, and are willing to have their own policy, they have an option. If their medical status is fine, they just cancel the kid's policy and buy an inexpensive new one. If they have a medical problem, they can just continue with the basic one, and not be rejected by life insurers because of their medical status.

Those who are against taking out life insurance on a child argue that even though this insurance is cheap, if you were to lose a child, your household expenses would go down, not up. Therefore, unless your offspring is a model or a child star, for example, you are not losing income in the event of their demise. If you listen to the arguments from both sides, and make the decision to take out a policy in your child's name, experts say that at the very least, you should make sure you are dealing with a Triple A rated insurance company.