1. Christopher LawrencePRO
    Insurance Broker | Financial Consultant, Lawrence Insurance Consulting, Southern New Jersey
    No, you can generally only take out life insurance on yourself or someone who you have a "vested interest" in. This means that you can take out a policy on members of your immediate family members such as your wife, child, or parent. There are ways to structure a life insurance policy to protect ones business interests, although such options are to numerous to discuss in depth without writing a small book here.
    Answered on June 26, 2013
  2. Peggy MacePRO
    President and Senior Agent, Outlook Life, Most of the U.S.
    You can take out life insurance on anyone with whom you have an insurable interest. This can be established simply by being a close family member, in the US. However, financial insurable interest must exist even with these types of relationships, with most life insurance companies.

    E.g. An adult child can take out a small policy on an aging parent because of the the emotional loss that would occur upon the death of the parent. But in order to take out a large policy there must usually be financial loss. I.e. The adult child contributes financially to their parent and are using life insurance to offset that, or their parent contributes financially to them and they would suffer financial loss upon the death of that parent. 
    Answered on June 26, 2013
  3. David RacichPRO
    Fountain Hills, Arizona
    You have to have insurable interest on the policy insured and be prepared to justify the amount of life insurance you’re applying for. If there is no insurable interest, i.e. no quantifiable economic interest between you and the proposed policy insured, the application will be denied.
    Answered on June 26, 2013
  4. Tim WilhoitPRO
    Owner, Your Friend 4 Life, Brentwood TN
    No, you cannot take life insurance on just anyone you please. There would be a windfall for murders and hitmen from their victims. Typically you would insure yourself against a loss for your loved ones and special interests.There is a gateway that must be met called insurable interest in order to take out life insurance on someone. Insurable interest states that you, the beneficiary, would suffer a financial loss or set back if said person were to die. Insurable interests can include a spouse, child, loved one dependent upon your income. a financial institution leading you money or a business partner or business interest. You can never take out a life insurance policy without the insured's knowledge. The insured has to sign and go through the underwriting process, not you.
    Answered on June 28, 2015
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