Agent Owner, Gilmore Insurance Services, Marysville, Washington State
No, you can no longer take out an insurance policy on anyone and without their consent. Insurance companies look for an "insurable interest" between insured and the policy owner. An employer can't take a policy out on an employee without consent of the employee, even if an insurable interest is present.
There are situations where it is possible to purchase life insurance on an individual without their knowledge. Confidential life insurance is a specific product that is used in business situations as well as familial concerns where a divorce decree requires ongoing payments.
Coverage is purchased by a third party with an insurable interest.
You can take out a life insurance plan on anyone with whom you have an insurable interest. This means that the life of that person represents a financial benefit to you, or on the converse, that the death of that person would cause you a financial loss.
There is also a degree to which insurable interest is determined by "a substantial interest engendered by love and affection if closely related by blood or by law." This might allow you take out a small life insurance policy on your grandparents, but unless you invest in the care of your grandparents, there would not be insurable interest to take out a large policy on them.
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Coverage is purchased by a third party with an insurable interest.
There is also a degree to which insurable interest is determined by "a substantial interest engendered by love and affection if closely related by blood or by law." This might allow you take out a small life insurance policy on your grandparents, but unless you invest in the care of your grandparents, there would not be insurable interest to take out a large policy on them.