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

What is Decreasing Term Life Insurance?

Is Decreasing term Insurance Right For You? Would You Know?

Three Ways Life Insurance May Help Pay For College

How Life Insurance Can Play a Role in the Education of Your Child

Life Insurance as a Gift

Who Do You Know that Can Benefit?

What it Takes to Qualify as a Beneficiary

Do you have the right person as the beneficiary on your life insurance policy? Here’s who you should consider and when you may want to consider a change.

Unique Benefits of Life Insurance You May Not Be Aware Of

There’s More to Life Insurance Than You May Realize

What You May Need to Know About Filing a Life Insurance Claim

Filing a life insurance claim can be a relatively smooth, hassle-free process when you know the steps to take. Learn more in our latest blog.

When Should I get Life Insurance on My Child?

Reasons to Get Life Insurance on Your Child ASAP.

Beyond Life Insurance: Other Death Benefits for Which You May Qualify

There May Be Multiple Resources for Benefits Upon the Death of a Loved One

Situations When Term Life Insurance May Be the Best Solution

Term Insurance is a Flexible and Affordable Choice

What is “Double Indemnity”?

Life Insurance Can Have Confusing Terms. This Should Not One

Leave a Comment