Can You Buy Life Insurance for Someone Who is Dying?

Shawn Plummer

CEO, The Annuity Expert

Understanding Life Insurance for Someone Who Is Dying

Can You Purchase Life Insurance? Yes, you can technically buy life insurance for someone who is dying. However, it’s important to understand the limitations and alternatives.

Limitations in Buying Life Insurance for the Terminally Ill

  • Two-Year Clause: Most life insurance policies include a clause where the insured must survive at least two years after the policy begins for the death benefit to be payable.
  • Medical Underwriting: Insurers typically require a medical examination or health questionnaire. A terminal illness will significantly impact policy approval and premiums.

Alternatives to Traditional Life Insurance

  • Fixed Indexed Annuity with Enhanced Death Benefit: This alternative can offer benefits to the beneficiaries, even in the case of a terminal illness. A fixed-indexed annuity with enhanced death benefit can provide a death benefit that may not have the same restrictions as traditional life insurance.

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Comparing Life Insurance and fixed-indexed annuities

FeatureLife InsuranceFixed Indexed Annuity with Enhanced Death Benefit
EligibilityStrict medical underwritingMore lenient, suitable for those with health issues
Death Benefit Payout Clause2-year survival requiredMay pay out irrespective of survival period
PurposeDeath benefit for beneficiariesInvestment and death benefit
CostBased on health and ageVaries, often higher for enhanced benefits


While purchasing life insurance for someone who is dying is possible, it may not be beneficial due to the two-year survival clause and stringent underwriting process. A more suitable alternative could be a fixed indexed annuity with an enhanced death benefit, offering a more flexible solution for those with terminal illnesses. This option may provide peace of mind and financial support for beneficiaries under these challenging circumstances.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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