The Long Read
Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)
Sadly, no. You can't.
To make someone your term insurance nominee, your insurer needs to know their insurable interest in you.
This means, you must be able to prove your partner will struggle financially if you pass away. But without any legal relationship like marriage or business partnership, it is extremely difficult to prove.
Sorry but no, you cannot buy a term insurance plan for your live-in partner, because you cannot prove your insurable interest in them i.e. you can’t prove to the insurer that their unexpected demise will cause much financial trouble for you.
Find out in detail if you can buy term insurance for someone else.
Even though you can’t make your live-in partner your term plan nominee, you can still ensure they receive your life cover upon your death. Here’s how:
Make your parents, or children the nominee
Then, create a Will
Mention in your Will that your nominee is only a recipient
Clearly state your partner’s final and indisputable right to receive the money
Pro tip: Please register your Will to avoid any legal disputes between your nominee and your partner.
No it’s not. That’s because the person mentioned in your Will will be the one receiving your policy money. Your Will will always override a term insurance nominee.
Let’s look at an example to understand this:
Say you have mentioned your mother as the nominee on your policy. But in your Will, you have stated that your live-in partner will receive the policy payout. In that case, the life insurance company will pay the sum assured to your mother but your live-in partner can still claim it.
However, there’s an exception - if you had checked for the MWPA provision in your policy, then only your wife and children will receive the policy money. In this case, the nominee in your Will (if different from your wife or children) will not get it.