Life insurance is mainly intended to safeguard the people you care about from financial difficulties after you die. In most situations, you apply for a life insurance policy for yourself. If something comes to you, your spouse, children, or another trusted person receives the benefit.
What if you rely on others for financial support? Can you get life insurance for your spouse or business partner? Could somebody else take out a policy from you without first informing you?
Murder Mysteries and Life Insurance
While trekking with her husband, a 25-year-old wife falls to her death. The woman’s mother, certain that her son-in-law pushed her daughter over the brink, continues on a never-ending search for evidence to establish his guilt. The authorities reject her assertions, considering them as the rantings of a bereaved mother. That is until they find that the husband surreptitiously purchased a million-dollar life insurance policy for his wife only days before her death.
Is this a fictitious scenario for a great film noir masterpiece, or might it actually happen? Could someone get a covert life insurance policy on someone else – perhaps on you?
Can I get life insurance on someone else’s behalf without their knowledge?
Perhaps you’d want to apply for a policy for your spouse if they’re the breadwinner or get life insurance for your grandchild to safeguard them in the future. Whatever your motivation, there are several conditions to meet when purchasing life insurance for someone else:
- You must show that you or the owner has an “insurable interest.” That’s insurance-speak for “Would you suffer financial difficulty if they died?”
- You must get authorization from the covered individual. They must generally sign the insurance paperwork, or a parent or guardian must sign on their behalf if they are a child.
- Depending on the policy, the insured may be required to undergo a medical examination.
- They must also submit information such as their Social Security number, name, and residence.
In summary, obtaining coverage for someone without their knowledge is difficult, not to mention insurance fraud. If you want to acquire a policy for someone else, talk to a life insurance agent (and the insured) about the procedure.
Medical examinations are frequently required as well.
Because most life insurance plans require medical examinations before issuing a policy. Instances of fraudulent life insurance policies are exceedingly rare. A medical exam is usually triggered by the policy having a particular minimum size. Thus lesser plans, such as those under $250,000, may not necessitate one. Even underwriting for a small policy will almost certainly need the submission of medical data to the underwriter. This involves a signature on a form, and your doctor may also notify you that a request for a copy of your information is pending.
How Do You Know If Someone Has Taken Out A Life Insurance Policy On You?
People frequently fear that a life insurance policy has been taken out on them without their knowledge. People are concerned because they believe a policy may be purchased with malicious purposes, such as murder, in order to obtain an insurance payout. It is unsurprising that with such large sums of money at stake in life insurance contracts, there has been a lot of fraud over the long years.
Life insurance firms have also become quite adept at detecting fraud, making it extremely difficult for a fraudster to succeed against a life insurance business. If you’re still concerned that someone could take out a life insurance policy on your life without your knowledge, here’s how to find out.
What if you bought life insurance on someone else and they don’t want it?
If you possess a life insurance policy on someone else’s life, you can choose whether or not to surrender the coverage. Even if the insured person no longer wishes for you to hold the policy, they cannot compel you to terminate, relinquish, sell, or otherwise dispose of your own until the policy is modified by court order in bankruptcy or divorce proceedings. If you unlawfully own insurance on someone else, you must relinquish the policy as soon as possible.
The simple answer is that you cannot take out a life insurance policy on someone without their consent. Obtaining life insurance for someone else requires you to first understand your choices. Secret life insurance plans may be the stuff of Hollywood blockbusters. But they’re nearly difficult to pull off in real life. Here’s everything you need to know about taking out life insurance on someone else.