taking out life insurance on someone else?

[claudiak]

What is the name of your state? California
My sister in law has COPD. She was told she has about 10 years or less to live. she is having major marital problems right now and just found out that her husband has taken out several different life insurance policies on her since he heard her diagnosis. She is disabled for several reasons, is in her early 60's, and has not worked in about 10 years. I thought you had to incur a financial loss by a persons death in order to have an 'insurable interest' in them...like loss of income. is that true!? is there anything she can do to stop him (and his girlfriend) from getting rich off her impending death? they have been married for over 20 years.

 

[Some Random Guy]

It is generally assumed that spouses have insurable interest in each other.

Howwever, it sounds like your sister has bigger problems. She is married to someone who is widely known to have a girlfriend and is scheming to make money off of her. Why isn't she getting a divorce?

How does she know of these insurance policies? Was her true medical history put on the application?

 

[claudiak]

taking out ins. on someone else

thank you, some guy, for your response.
he has kept her 'dumb' their whole married life. with some urging from me and others, she is investigating things. she has found at least 5 other bank accounts, in his name only, with the statements being sent to a PO box. this guy is a real tool. she is gathering info then going to a lawyer. but she doesn't want to leap too soon. she is about 99% sure there is another girl...even if there isn't, there are loans with her name forged, not to mention these accts with LOTS of money in them. like i said, she is blond to the roots plus he talks a good story and has kept her in the dark about finances.
i have no idea if he was able to get her medical papers sent to the insurance company or not. she is going to ask her dr. She doesn't think she signed anything for that...but then, he is a tricky one and has her sign stuff all the time when she doesn't know what it is. that's why i am trying to help her now. i just found all this has been going on for years. she has not had an insurance medical exam, we do know that. high premiums for a couple of years, but he will reap the bennies. what a JERK!

 

[moburkes]

smaller policies do not require exams, but, if she dies within 2 years (don't take it the wrong way), the insurance company will investigate before paying. Also, they can deny a claim at ANY time if they discover fraud.

 

[Betty]

Her husband should not have been able to take out ins. policies on her life (since she is an adult) w/o her signature on the applications. If he signed for her, that would be fraud.