President | Founder, CLM Insurance Group, Delray Beach, FL
In order to take out a life insurance policy on another person you'll need the following:
The insured's consent
Insurable interest
Whether you plan on being the beneficiary, the policy owner or possibly both, you'll need to have consent of the insured. However, as long as you have insurable interest that shouldn't be difficult to obtain.
For more information on life insurance policies and rates visit www.clminsure.com
President, Lane Independent Agency, Southern California
You will need his consent, and yes, you must have an insurable interest. This is for his protection too. You cannot just ask a company to pay you when someone, anyone dies. There has to be a loss to you for which you are compensated. That is the purpose of life insurance as it has been designed for centuries. Thank you. GARY LANE
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
No. In order to take a life insurance policy out on a person, you must have their consent and there has to be an insurable interest. The insured has to understand what he's agreeing to and be able to sign on his own behalf.
Even with a power of attorney, many companies may still not approve a life insurance policy because the medical history may contain a medical condition that is "uninsurable" - meaning that the reason the power of attorney was invoked is because they have a condition the carrier would not want to write coverage for in general.
Great question! Unfortunately, unless the person to be insured is very young ( think under 16) they are going to have to sign the application as the "insured". The laws governing the issuing of insurance were set up especially to prevent person A from taking out a policy on person B without them being aware, to protect person B. I'd be happy to explain in more detail if you'd like, just contact me. I'd suggest the best solution is that you work out whatever issues there are with dad, and proceed together. Thanks for asking!
Normally, the insured's knowledge and consent is needed. But, today, there are a growing number of accidental death and no-exam policies in the marketplace in which a policy on another person can be bought online or by phone without the insured's knowledge or consent, with or without fraud.
I know because I've been a murder trial witness in 3 cases over the past 4 years and it's no fun.
At our agency, all calls are recorded and all 3 charged were convicted in less than 4 hours' time. But our phone agents were duped and didn't realize that they were not talking to the insured. Sadly, the total number of murders of a relative in order to gain life insurance proceeds is very common in the U.S. today and almost never talked about. Just Google "life insurance murder" and you will be shocked at what comes up on a daily basis. Three doctors in my family have reported for years that relatives who stand to gain insurance proceeds are often too anxious to "unplug" a loved one when a coma situation exists. Sad stuff.
It's safest for all concerned that the insured always have knowledge and consent to the life insurance being bought.
No, you can't get life insurance on your dad without his consent. If you are trying to secure some funding for final expenses when your father passes away, here are some tips that might help him consent to your purchasing coverage on him.
1) Tell him you love him, and what a good provider he has been for your family.
2) Maybe bring up a situation that caused you to think of buying life insurance for him. E.g. When a friend or uncle died. And how it got you to thinking about what you would do if your father died.
3) Explain that life insurance pays a death benefit quickly, without going through probate. This allows survivors to pay bills quickly and focus on supporting one another, rather than worrying about how to pay the bill.
4) Use a simplified or guaranteed issue policy that does not ask a lot of health questions and does not need an exam. If you use a policy that pays the death benefit from day one, you will need to get your father's health history. If guaranteed issue policy, it will be graded, but he cannot be declined.
5) Make sure he understands what will be required, be that a phone interview, drafting from his checking account (unless you are paying the premium), etc. With guaranteed issue policies, nothing is required but his signature on the application.
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The insured's consent
Insurable interest
Whether you plan on being the beneficiary, the policy owner or possibly both, you'll need to have consent of the insured. However, as long as you have insurable interest that shouldn't be difficult to obtain.
For more information on life insurance policies and rates visit www.clminsure.com
Even with a power of attorney, many companies may still not approve a life insurance policy because the medical history may contain a medical condition that is "uninsurable" - meaning that the reason the power of attorney was invoked is because they have a condition the carrier would not want to write coverage for in general.
I know because I've been a murder trial witness in 3 cases over the past 4 years and it's no fun.
At our agency, all calls are recorded and all 3 charged were convicted in less than 4 hours' time. But our phone agents were duped and didn't realize that they were not talking to the insured. Sadly, the total number of murders of a relative in order to gain life insurance proceeds is very common in the U.S. today and almost never talked about. Just Google "life insurance murder" and you will be shocked at what comes up on a daily basis. Three doctors in my family have reported for years that relatives who stand to gain insurance proceeds are often too anxious to "unplug" a loved one when a coma situation exists. Sad stuff.
It's safest for all concerned that the insured always have knowledge and consent to the life insurance being bought.
1) Tell him you love him, and what a good provider he has been for your family.
2) Maybe bring up a situation that caused you to think of buying life insurance for him. E.g. When a friend or uncle died. And how it got you to thinking about what you would do if your father died.
3) Explain that life insurance pays a death benefit quickly, without going through probate. This allows survivors to pay bills quickly and focus on supporting one another, rather than worrying about how to pay the bill.
4) Use a simplified or guaranteed issue policy that does not ask a lot of health questions and does not need an exam. If you use a policy that pays the death benefit from day one, you will need to get your father's health history. If guaranteed issue policy, it will be graded, but he cannot be declined.
5) Make sure he understands what will be required, be that a phone interview, drafting from his checking account (unless you are paying the premium), etc. With guaranteed issue policies, nothing is required but his signature on the application.