Can You Buy Life Insurance on Someone You Don’t Know or Like?
Can You Buy Life Insurance on Someone You Don’t Know or Like?
Have you ever wondered if you could buy a life insurance policy on someone you don’t know, like an aging actor or rock start who doesn’t appear to be in good health? What if you could buy a life insurance policy on someone who you didn’t care for and benefit from their death? Can you, indeed, buy a life insurance policy on someone you don’t know or like?
There are really two different questions here, with two different answers. Let’s take a look.
First and foremost, you must have an “insurable interest” in anyone you buy life insurance for. This means you must be able to show that you would be negatively impacted financially by their loss. In the case of someone you do not know, that is unlikely. You would also need their consent, which is also unlikely.
Now, when it comes to the question of whether or not you can buy life insurance on someone you don’t like, the answer is yes, provided certain conditions exist. Let’s say you have a business partner that you don’t necessarily get along with, yet, they play an important role in your financial future. You could, in theory, take out a life insurance policy on them to protect your interests, as long as they consent to it. In fact, insuring partners is often a good business practice if all partners are insured. Spouses are sometimes unlikeable, but they would still be able to insure each other, with permission, of course.
Can you insure another family member like an old aunt or uncle? Not likely, unless you can demonstrate a financial loss would occur in the event of their death. Whether you like them or not, a family member’s death would have to negatively impact you for you to purchase insurance on their life. You would also still need their consent.
The insurable interest aspect of life insurance prevents people from “betting” on the lives of people they don’t know. It also may serve as a deterrent for those who may have more devious ideas.
There are many reasons to insure a life but financial gain shouldn’t be one of them. Contact one of our independent insurance agents to discuss your legitimate needs or to get a quote today.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
Your Life Insurance Policy: A Secret Savings Account?
Don’t Cash Out! Unlock the Hidden Benefits of Your Life Insurance Policy (Free Quote Included!)
Taming the Paper Tiger: How to Keep Important Documents Safe
Don’t Let Your Important Documents Become Disaster Snacks! Safe Storage Tips Inside
Fort Knox for Your Family: Why Life Insurance is Your Secret Weapon
Life Insurance: The Unsung Hero of Family Protection (Free Quote!)
Decoding the Grocery Aisle: Your Guide to Nutrition Labels
Mystery Solved! Unveiling the Secrets of Nutrition Labels for Smarter Grocery Shopping
Kick the Bucket List, Not the Bucket: Unleashing Your Inner Adventurer
Bucket List Blues? Unleash Your Inner Adventurer with This Fun and Feasible Guide
Life Insurance: Unraveling the Mystery (No Shady Business Here)!
Life Insurance FAQs: Unveiling the Mysteries and Myths (Without the Gimmicks!)
Life Insurance Claims: Demystifying the Process (So You Can Get What You’re Owed)
Life Insurance Claims: A Simple Guide to Getting What You Deserve
Life Changes? Don’t Forget Your Life Insurance! A Guide to Keeping Your Beneficiaries Up-to-Date
Life’s Milestones and Your Life Insurance Beneficiary: Why Regular Reviews Are Crucial
Million Dollar Dreams, Affordable Reality: Is a Big Life Insurance Policy Right for You?
Million Dollar Life Insurance: Myth or Must-Have? Exploring Your Options
No Needles, No Problem: Unveiling the Secrets of Life Insurance Without a Physical Exam
Life Insurance Made Easy: Skip the Physical, Get Covered Today!