life insurance

[Dianalucky]

What is the name of your state? Colorado
How can I purchase a life insurance policy on a previous employee who was convicted of felony theft & ordered restitution? The restitution schedule is $100.00 per month & the amount is $61,000.00. This person is 46 years old & the restitution order would take 55 + years to complete.What is the name of your state?

 

[tranquility]

From a legal standpoint, you usually can't buy insurance on another without his agreement, but I recognize this may be a little different. Interesting question.

However, from a financial standpoint, you are in competition with the insurance company to come up with the "bet" on who will profit the most. They are really good at statistically making more than they pay out. Absent some estate or gift reason, life insurance is usually only best for reducing risk to those who depend on the life. At $100 a month, you can't be relying on the cash for your lifestyle. I don't see the value to the policy even if you could do it.

 

[Dandy Don]

Please explain WHY you want to buy a life insurance policy on this person. Is the person currently employed elsewhere and have they begun to make restitution payments? Also explain if he is married and has a wife and children.

 

[ErinGoBragh]

From the sounds of it OP wants to buy the LI policy because the terms of the restitution order will likely never be fulfilled, most likely the person ordered to pay will pass away long before the restitution is never paid. An LI policy would ensure payout of some kind at the end of the debtor's lifespan.

I have seen this done before but never without the consent of the insured, so good luck if you don't have that.

 

[Dianalucky]

Dandy Don
You ask why I want life insurance policy. Yes, she is currently employed, but the payment amount is so little that I will never see the amount of $61,000 which she stole over a 17 month period. Plus, I put money from cash advances into the business to maintain cash flow & I & my partner went without 5 pay checks each. The court settlement doesn't even address these items only the amount of the theft. She is divorced & has one child & I believe the house se lives in is in her ex husbands name. I would consider civil case, but you can't get blood from a turnip. My thought was that if I had a life policy I might see some of what is due to me.

 

[Betty]

I was an underwriter for a major life ins. co. & we would never issue a life insurance policy (nor would the major cos. we reinsured with) like you are suggesting/wanting. There may be some cos. that will do it but you will have to have the consent of the person you are insuring. They have to sign the application, etc.

add info: The person you are taking ins. out on would also have to be insurable re medical hx, etc. There are also cos. that will not issue ins. on a convicted felon - individual consideration at my company but usually not unless the conviction was quite some time ago (then possibly).