When you take out a life insurance policy, the person that will be insured must know about it. It is illegal to take out a life insurance policy on someone without their permission or knowledge. There are just so many reasons why it is not a good idea, and if you are caught then there is a pretty good chance the policy will no longer take effect. Although sometimes it does occur, it’s never a good idea to take that risk because it could result in legal issues. If you are concerned about someone and think that they need a life insurance policy, then you should talk with them and explain your reasoning. One thing you never should do is go behind the persons back and take out a life insurance policy for that person.
Taking out a life insurance policy under someone else’s name can be a challenge in itself. You need a lot of their personal information just to set up a policy, and hiding all the premium payments will cause some trouble also. If the person ever found out that you took out a policy in their name without their approval and knowledge, then it could cause some issues between the person and you. Also once they find out that you took out a policy in their name, they would probably cancel it as soon as possible.
It’s even worse if you take out a policy and name yourself as the beneficiary. Then if the person was to pass away as a result of murder of any other unknown cause, you would be the first person they go to in an investigation. If you are put in that situation, it can be very difficult to prove your innocence, especially when you are the one benefiting from the death. That’s why it’s never a good idea to take out a policy in someone else’s name, because it will lead to more trouble than it’s worth.
It’s natural to be concerned about someone’s safety and financial security, but you just can’t go out and get a life insurance policy in someone else’s name. Talk with the person if you are truly concerned about the person not having a life insurance policy, and remember not to do anything illegal without the persons permission. It will not be worth the trouble you have to go through just to cover up an illegal life insurance policy.