Founder, Abrams Insurance Solutions, Inc., San Diego, CA
No, you can't insurance out on anyone. There has to be an insurable interest and the insured (person being insured) must consent, sign the application, and go through the underwriting process. Insurance is often taken out on spouses, parents or business partners as a financial hardship may occur if one of these people passes unexpectedly.
Traditionally, Mr. Abrams answer is correct. Traditional Life Insurance carriers will only issue coverage based on insurable interest guidelines (these guidelines tend to be a little different based on each individual carrier but not dramatically different).
However, there is at least one specialty carrier who can issue a "Stranger Owned" Life Insurance policy (STOLI). Lloyds of London is the carrier that we represent when it comes to this type of need. Please keep in mind that products are State specific and not all products are available in all States. It is also important to note that every situation is different and as such, coverage is considered on an individual basis.
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However, there is at least one specialty carrier who can issue a "Stranger Owned" Life Insurance policy (STOLI). Lloyds of London is the carrier that we represent when it comes to this type of need. Please keep in mind that products are State specific and not all products are available in all States. It is also important to note that every situation is different and as such, coverage is considered on an individual basis.
I hope this answer helped. Thank you, Don Hansen