by Guest » Mon Jul 27, 2009 07:07 pm
She and I have been divorced almost 20 yrs but she seems to be on a crash course with fate. I'd like to have a policy in place where if the unthinkable eventually happens our son can benefit from it. I don't want her to know about it as it may give her an incentive to live.
Posted: Tue Aug 18, 2009 08:06 pm Post Subject:
I'm sure that it's done plenty of times in an illegal manner. I'm only saying that with the right set of facts, it is not necessarily illegal to buy insurance on somebody without their knowledge.
As for this former spouse situation, you are correct and nobody would underwrite the policy.
Posted: Tue Aug 18, 2009 08:12 pm Post Subject:
In regards to state statutes, I haven't run into any states where this is illegal, but there may be a couple. If something isn't legal in a state I am sure Lloyd's would let you know that it isn't approved in that respective state. They are a major insurer, and I am sure they don't want to lose anything.
The Lloyd's policy can't be legal in the state of NY. This is because Lloyd's won't let someone buy coverage on their spouse without consent and the state of NY only allow non-consent insurance to be done with spouses (and young minors).
Posted: Wed Aug 19, 2009 10:08 pm Post Subject:
InsuranceExpert,
I agree with you completely.
Mark
Posted: Thu Aug 20, 2009 06:42 pm Post Subject: Yes You Can
LLoyds of London offers a 1 year term life policy on someone without their knowledge. You have to show a reason for the insurance, but the insured will never know. It is very expensive though
Posted: Thu Aug 20, 2009 06:44 pm Post Subject: Yes You Can
link removed by mod..is the only place this can be done. I think that it is a one year term.
Posted: Thu Aug 20, 2009 07:16 pm Post Subject:
One of the issues is that because it is one year term, it is always going to be contestible. The policy is not guaranteed issue. If the owner knows of a reason why the insured might die and doesn't disclose it, the claim will be contested.
Ex. The OP wants to buy a policy on his wife because he knows that she has a drug habit and she's been prostituting herself. He does not disclose this information on the application. She dies 9 months later when she gets stabbed in an alley. When the claim gets investigated if they find out that the owner knew of her issues, the claim won't be paid.
Posted: Thu Aug 20, 2009 11:18 pm Post Subject:
Holy Hooker, Batman!! I completely missed that part of the post. Makes perfect sense though.
Posted: Fri Aug 21, 2009 12:12 pm Post Subject:
Hi friends,
But, taking out life insurance on the life of a 20-year former spouse without her knowledge because you think something bad is going to happen to her (another term for death) is altogether wrong.
I was going through a website a couple of days back and it was mentioned that in order to get a policy on someone, you'd need to obtain his/her permission. Also it said that there has to be an insurable interest. Can someone really have an insurable interest on his ex-wife?
Posted: Fri Aug 21, 2009 10:54 pm Post Subject:
Can someone really have an insurable interest on his ex-wife?
Sure he could if they have minor children and she contributes to their support.Posted: Mon Aug 24, 2009 02:46 am Post Subject:
Can someone really have an insurable interest on his ex-wife?
Absolutely. Lori was correct in that; when children are involved, most courts will that each parent has an insurable interest on the other and will order that life insurance be purchased.
In my case, and in most of the cases I've seen, one parent usually ends up paying all the premiums (that was me), policy ownership is shared, and she was named as my beneficiary. 16 years later, the policy was allowed to lapse and she was on her own.
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