Can You Take Out A Life Insurance Policy On A Stranger?
12689 POINTSview profileTed RatliffOwner, SFS Associates,No, you must have insurable interest, such as a family member, an employee or business partner, or a spouse. The individual must sign the application in your presence and be fully aware of the transaction. Any policy taken out without a persons knowledge is considered fraud and could be subject to criminal action.Answered on May 21, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaYou must establish insurable interest and the need to indemnify financial loss at the death of a “stranger” like in a business arrangement where the parties may be unknown to each other, but they share business interest as in a buyout or bank financing. All that remains to secure the life insurance policy, providing underwriting approval, is the signature of the so called “stranger.”Answered on May 22, 2013+01+1 this answer
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37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaNot anymore. That was an early form of gambling. People would take out life insurance on a crew member of a ship, hoping that the crew member would die during a voyage. You must have an insurable interest in the person and the person must cooperate with medical information and a signature on the application.Answered on June 6, 2014flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.Being able to take life insurance out on a stranger puts people at risk for being the target of insurance fraud, such as money laundering or murder. Insurance companies have cracked down on this mightily by requiring that there is an insurable interest in order for someone to take out a policy on another, that the insured person gives their consent, and that agents report any suspicious activity in regard to fraud.Answered on December 9, 2014flag this answer
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