Life Insurance Policy??

Is it legal in the UK to have a life policy on someone who is not your father?

My sister in law, and her husband have a policy on my husbands father who just died...but get this...my husbands father is "not" her father, is that legal? Canthey cash it in without my husbands consent? It just doesn't sound right?

You can have a life policy on anyone you like as long as you are not doing it for fraudulent reasons.

I assume you want a policy for your stepfather/mother's partner?

No problem with that.

Just make sure his will makes you the beneficiary of the policy, to avoid any confusion later.

You can have a policy for anyone who is dependent on you or you are dependent on (physically or financially). Otherwise, no

If this policy is written in UK i have grave doubts as to how they have obtained this policy and whether it is valid. There is normally NO insurable interest even in the father blood-child relationship once a child is 21 (this relationship seems even less valid). The policy could have been written to cover a specific debt, your father in law could have insured himself and placed the policy in trust for your sister in law (no matter what the legal relationship) but a straight forward policy, her insuring him, may well have been illegally written and would result only in return of premium on his death. These things often happened in the past, not so common recently with the financial services act and best advice principal. Obviously this information is only a background there may be specifics in your sister in laws circumstances, she should consult an independant financial adviser,