Partner, Waterway Financial Group, Myrtle Beach, SC
Yes. But in most cases, you will have to not only be notified, but be a participant in the policy. A participant can be someone who simply signs and authorizes the policy to be written, all the way up to needing a full medical exam. You are not required to allow someone to do so. Children, if under a certain age, may have insurance written on them without them knowing what it is, but typically only by a parent/guardian with some sort of suitability requirement(s). There are other instances, such as divorce judgements from a court which might allow another person to write a policy on you, but each situation is unique.
Someone can take a life insurance policy out on you if: 1) you have an insurable interest in their life, and 2) you consent to having the policy placed.
An insurable interest means that they would be harmed financially if you passed away because you provide for them in some way. People can't just pick out someone to insure and try to make a profit off of their death.
Consenting to the policy means signing the application, agreeing to have your medical records reviewed if required, doing an exam or phone interview if ordered. Often when someone is taking out a policy on another, they will choose a No Exam policy. But that is totally up to the person being insured and the person taking out the policy, who is usually the policy owner.
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An insurable interest means that they would be harmed financially if you passed away because you provide for them in some way. People can't just pick out someone to insure and try to make a profit off of their death.
Consenting to the policy means signing the application, agreeing to have your medical records reviewed if required, doing an exam or phone interview if ordered. Often when someone is taking out a policy on another, they will choose a No Exam policy. But that is totally up to the person being insured and the person taking out the policy, who is usually the policy owner.