Life Insurance on a Non-Relative

The person buying the policy basically has to be able to prove that they have an interest in the insured person staying alive.

"insurable interest"

Life Insurance on a Non-Relative
ehBeth
Thank you for your very prompt answer.

In this case, there is no "insurable interest," so apparently it is not permissible.

Is there a victim and/or a basis to consider it contrary to the public interest? The old lady on whose life the policy is bought, is better off by the amount of money offered to her. The person/people inducing her apparently are better off or they wouldn't offer her the deal. The insurance company is apparently better off or it wouldn't offer the policy for sale.

Re: Life Insurance on a Non-Relative


The insurance company is making the offer contingent upon the insurable interest being in place. You don't see them advertising for the general public to take out life insurance policies on random strangers living in nursing homes do you? If you read the fine print on any insurance offer you'll see that there are references to conditions of acceptance by the insurer.

If anyone could take out a policy on anyone they chose, I'd have a few dozen taken out on some 90+ year olds I know...

Life Insurance on a Non-Relative
ehBeth-

I see.

Though -- I guess -- the insurance company knows the age of the person on whose life the policy is written. Perhaps the reason is, it gives the person who does not have an economic interest in the person's life an economic motive to murder the person.