You can take out a life insurance policy on anyone for whom you have an insurable interest. An insurable interest would mean that you would be at a financial loss if the individual were do die.
If you cannot prove that you have an insurable interest at time of the application, the life insurance company will not issue the policy (at least not with you as the beneficiary).
Insurable interest is only required at issue I (i.e. you can become the beneficiary of a policy after it is issued even if you do not have an insurable interest).
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Who can you take a life insurance policy out on? Well, there must be some sort of insurable interest present for the application to be accepted. An insurable interest could be between family members or business partners. You cannot directly insure strangers without showing an insurable interest. Also unless a young child must also agree to be insured. You cannot insure adults without their knowledge.
.JPG){kind=avatar}
If you cannot prove that you have an insurable interest at time of the application, the life insurance company will not issue the policy (at least not with you as the beneficiary).
Insurable interest is only required at issue I (i.e. you can become the beneficiary of a policy after it is issued even if you do not have an insurable interest).