Do you have to be related to someone in order to take out life insurance on them?

[Fedorgasm]

Ok I know nothing about insurance so this is probably crazy and stupid, but...

been shopping around for life insurance for myself and it's looking like it's going to cost about $100 per month for 1 million bucks of coverage over a 20 year term.

So this would end up costing 24 grand over the entire term.

So in theory I could buy 20 of these policies, one for each of my friends, and it would cost 480,000.

I read once that something like 9.7% of men die before 60, so the odds are that 2 of my friends will die in the next 20 years and I'll get a million for each. Subtract my insurance payments and I still come out ahead 1.52 Million.

So why wouldn't a group of friends all get together and agree to take out insurance policies on each other? I mean as long as you have good friends that you trust not to kill you.

 

[GoodBadHBK]

Who are you planning to murder?

 

[Sonny Qc]

Pretty I won't make it to 60,
feel free to take one on me

 

[Zinger]

I haven't insured myself.

That way I'm making sure I'm more useful alive.

 

[Oregonmma]

Sure, if you don't mind being investigated.

 

[Fedorgasm]

Sure, if you don't mind being investigated.

Is it even illegal? I mean, I treasure my friends. It would take more than 1.5 million for me to get over the loss, but it's a start.

I don't even know why an insurance company would care. They're getting their premiums, they know the odds.

 

[djacobox372]

No, companies take out life insurance all the time on their employees.

You need to show a financial stake in the person that is it. You can't just take life insurance out on some rando.

 

[Captain Sausage]

If u could I would insure Ghislaine Maxwell, just a matter of time until that literal monster gets taken out...win/win the sicko groomer is gone and I get paid.

 

[ScarfaceJr]

Who are you planning to murder?

my first thought as well

 

[GoodBadHBK]

my first thought as well

He would have liked the comment if he wasn't

 

[genecop]

Anyone can be a beneficiary…

 

[cooks1]

Ok I know nothing about insurance so this is probably crazy and stupid, but...

been shopping around for life insurance for myself and it's looking like it's going to cost about $100 per month for 1 million bucks of coverage over a 20 year term.

So this would end up costing 24 grand over the entire term.

So in theory I could buy 20 of these policies, one for each of my friends, and it would cost 480,000.

I read once that something like 9.7% of men die before 60, so the odds are that 2 of my friends will die in the next 20 years and I'll get a million for each. Subtract my insurance payments and I still come out ahead 1.52 Million.

So why wouldn't a group of friends all get together and agree to take out insurance policies on each other? I mean as long as you have good friends that you trust not to kill you.

You can't take out a life insurance policy on someone else without their knowledge and consent. And even then, I would expect to spend time in a courtroom if you were playing shenanigans.

Better to just have the person buy the policy themself and list you as the beneficiary.

 

[EndlessCritic]

Generally speaking you need to show that you have an "insurable interest" in the other person's life. Which means you need to be able to show you would suffer financially if that others person died. If so, you can take out life insurance against their life. Typically, consent is required.

 

[cooks1]

Anyone can be a beneficiary…

That's true. But not anyone can be the insured.

A person can't be insured by someone else without their knowledge and consent.

 

[genecop]

That's true. But not anyone can be the insured.

A person can't be insured by someone else without their knowledge and consent.

I was assuming he wasn’t trying to take out a life insurance policy on someone who didn’t know about it..lol

 

[HARRISON_3]

You don't have to be related to them, but you do have to love them.

 

[Devotion]

why do i have a feeling TS is gonna be on the next episode of Forensic Files...

 

[Belaya Smert]

This is the single most suspect thread title I’ve ever seen. Good Job!

 

[ralphc1]

You can't take out a life insurance policy on someone else without their knowledge and consent. And even then, I would expect to spend time in a courtroom if you were playing shenanigans.

Better to just have the person buy the policy themself and list you as the beneficiary.

I don't know if TS's friends have the money to purchase such policies.

That might be something that could be done as a group where each person takes out a policy and names the others as a beneficiary but how can you be certain everybody in the group keeps up paying the insurance? I suppose you could create a fund that everyone pay into and the insurance is purchased with that fund. That would be close to a Tontine.

It would probably be better to see if they would allow it. It might be risky as I suppose they could rescind their permission at any time and TS would have paid premiums for nothing.

I think I saw something about the Chinese investing in life insurance to the extent of living very frugal lives to pay the policy and receive a huge windfall when a relative dies.

 

[shunyata]

That's true. But not anyone can be the insured.

A person can't be insured by someone else without their knowledge and consent.

Not sure how legal this is in every state, but there are cases where employers have taken out life insurance policies on workers without their knowledge.



OP, what you want is called a tontine. Last one alive out of your friends and you gets to keep the collection of priceless art stolen by Nazis.