Can I take a life insurance policy out on a friend if they consent to it?

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Newlywed

Can I take a life insurance policy out on a friend if they consent to it?

Additional Details
Here are a few more details to work with. My friends death would be a loss for me in more than one way since she is the one I depend on financially and in the event of her death I would want to be her beneficiary. I have no transportation or home. Also, would I have to disclose what our relationship is to insure her?

mbrcatz

Yes, you can take out a policy on your friend, with her consent.

The application WILL ask for the relationship between the two of you.

Dave W

I think you generally have to have what is called an 'insurable interest' in the person that you buy the policy on. I believe that means they need to be a relative or a business partner or someone you have emotional or financial ties to.

Byron Udell

None of the companies will deny coverage as long as a financial/insurable interest is evident. For instance, If she/he is your domestic partner he/she can be named as the beneficiary of your life insurance policy. Domestic partners living together, sharing expenses, or having children together will qualify as long as the financial justification requirements are met. Ask your agent for help with this.

ricks

you dont have to have a blood relation. But you will have to explain your relationship as to why you are dependent on her. It wont be too involved. You will need more than an emotional reason because just saying that you really liked the person will not qualify as insurable interest.

What you will need to satisfy is answer this one question: "how will this persons death hurt me financially?" If you cant answer that (and you will need more than 1/2 of the rent & pizza on Friday as reason)

The Rabbi

The law says you have to have an insurable interest in the one to be insured. That means that you would suffer financially with the death of the insured. If your 'friend' is your significant other, then that will satisfy the law with many companies.

Financial JUSTICE

Probably, but I hope this friend is like a brother or sister to you.

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