Taking out a life insurance policy on someone else?

Alright, this should be an easy best answer.

I know that this lady took one out of her ex, and all she did was get him to sign the paper and paid monthly and when he died she got the money; is it really that easy?

She took her's out for $250,000. Is there a limit on how much you can take out or does it depend on the person you are taking it out on...or what?

It sounds like a pretty legal and easy way to get money to me. Eh?

You must have an insurable interest in order to have a life insurance policy on somebody else. As part of the application process, the insured also must take a physical examination.

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.

A person probably would not have an insurable interest in the life of an ex-spouse.

Assuming that a person had an insurable interest, it would be possible to take out a policy in excess of $250,000. I have seen unfunded life insurance trusts in excess of $1 million, so $250,000 is not really a large amount. The essential thing is to have enough money to pay the life insurance premium.

First you have to have insurable interest. You have to prove to the insurance company that you would somehow be negatively affected financially if something were to happen to this person.

Second, you will have to have the insured participate somehow in the process. If it is a large policy, then a medical exam will be required. If it is a small policy where a medical exam is not required then the insured has to sign the application and participate in any kind of telephone or mail correspondence that the insurance company might have.

Also it may be a fairly easy process, but I'm not sure I would call this easy money considering you will have to shell out a lot of money in premiums in the hope that someone will die sooner than the insurance company thinks. Unless you plan on committing some sort of crime, then I wouldn't consider this an easy way to get money.

Of course it is legal and whether it is ethical has nothing to do with it. You can "BET" money on a "friend" or co-worker's imminent death by paying the Premium....pretty stupid unless you know something that the insurance companies don't...(illegal or dangerous drug use might be one...unknown and unreported heart conditions another)

The trick is to come up with a reason that the insurer would take your policy that would not raise their suspicions....Perfectly legal, many corporations are taking out policies for EMPLOYEES using inside info...

Easy money if you can hedge your bet also...

Got an obese "friend"?...insure them and then "gift" them with coupons to McD etc...get the idea?

There are restrictions. However, life insurance policies are rather simple to get. My husband and I recently took out $250,000 policies for each other. It's simply a way to insure the other one and our family has a lil bit of protection and is taken care of to some degree if one of us passes. Not all people who take out life insurance policies are like the crazies that get show cased on court tv for killing their spouse for the insurance money!

Some have restrictions on how they die. I wouldn't consider it easy if they have to die first.