1. Christopher Lawrence
    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 Mace
    COO and Senior Agent, Outlook Life, All 50 States
    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
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