Insurable Interest

[deborah226]

I live in New Jersey
I have a long term man in my life. We do not live together, and do not want to get married. He wants me to get a life insurance policy on him, naming me the beneficiary.
He wants me to apply and get the insurance, so that I can be assured that no matter what our future holds, the policy can not be canceled by him; and he will pay the premium.
Is that possible? If so, how do I go about that? What is required to confirm 'insurable interest'?
Thank you

 

[mlane58]

For purposes of life insurance, everyone is considered to have an insurable interest in their own lives as well as the lives of their spouses and dependents. Business partners or another individual with whom you own property would also qualify. You may insure someone that you are financially dependent upon regardless of blood relationship. So how are financially dependent on your BF?

 

[Betty]

I completely agree with mlane. The co. I worked for would not issue a policy as you are suggesting. What is the insurable interest & as mlane asked, what would be your financial loss at the death of the insured? How much would this policy be for? (The higher the amt. the less likely any co. would consider issuing the coverage & they would still want an insurable interest.)

 

[moburkes]

But, insurable interest only exists at the time of the application. So, boyfriend can get a policy on himself, and, once issued, make her the owner.

 

[Betty]

Once a policy is issued & in force, the bene can always be changed to just about anyone the owner of the policy wants. However; since I was an underwriter & we wanted an insurable interest at the time of issue so there wouldn't be adverse selection against the co., we didn't like to broadcast that you could change the bene after issue. (there is some adverse selection against the co. when that is done & we worked for & needed to protect the co.)

Mo - even if the bf took the policy out on himself & as owner, we wouldn't allow him to name the gf as bene at issue - no insurable interest that I can see (what is her loss at his death?). He could name estate as bene for example & change it after issue to her & transfer ownership to her after issue also if he wanted.

OP - what would your financial loss be at the death of the insured?

 

[moburkes]

You're right, Betty. Just explaining that there is a way around this.

 

[Betty]

You're right - there is.