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

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

The Role of Life Insurance in Business

Here is Why Life Insurance Can Play an Important Role in Your Organization

Life Insurance vs Burial Insurance

Covering the Costs of a Burial and Final Expenses are Two Different Things.

Life Expectancy Changes Through the Years

You Think Life Is Short? Be Grateful You Didn’t Live in the Bronze Age.

How to Choose a Beneficiary

Choosing a Beneficiary is an Important Decision When Buying Life Insurance. Here’s why.

How Your Hobbies Can Affect Life Insurance Rates

A Risky Lifestyle Means Higher Life Insurance Premiums

The Different Types of Insurance Companies

You Can Benefit From Knowing the Differences Between Insurance Companies.

The Four Main Players in a Life Insurance Policy

Life Insurance Doesn’t have to Be Complicated. Here are the Four Parties Involved.

Foundations of Health Insurance

Knowing the Basics Can Help You Better Understand Health Insurance

Five Life Insurance Resolutions for 2020

Happy New Year! Now, Check Your Life Insurance Policies.

Can You Buy Life Insurance on Someone You Don’t Know or Like?

Do You Have an “Insurable Interest” in Someone?

Leave a Comment