by Guest » Tue Nov 03, 2009 02:04 pm
Me and my boyfriend have been together for 3 years. We live together. He owns the house we now live in and makes the mortgage paments on that property. I pay all the other bills such as food, utilities, internet, cable. I was wanted to get a life insuracne plan to protect me in case something happens to him, just enouph to pay off the house and other expenses. Can I purchase life insurance on him.Or does he need to purchase it and put me as the beneficiary?
Posted: Thu Dec 01, 2011 08:29 pm Post Subject:
I don't think the issue here is that her boyfriend doesn't know that she is buying life insurance on him, she is concerned about it being legal for her to be the beneficiary. It is true that the owner of the contract would have to make the change. My statement was that for her to be the beneficiary legally, they would have to change the beneficiary to her after the policy is issued and inforce.
Posted: Thu Dec 01, 2011 10:11 pm Post Subject:
TaxFreeIncome, what makes you think that he can't be the policyowner with his girlfriend as the beneficiary from time of application?
Posted: Fri Dec 02, 2011 07:41 am Post Subject:
I didn't say he couldn't. I was simply stating that a person could change the beneficiary after the policy is inforce to anyone they want without having to go through proving to the insurance company insurable interest. In this situation their is definitely insurable interest and their wouldn't be a problem but If one didn't want to go through the hassle of coming up with documents to prove the insurable interest, they could simply just change the beneficiary after the policy was inforce.
Posted: Fri Dec 02, 2011 11:44 am Post Subject:
There does not need to be an insurable interest on the part of the beneficiary. The necessary insurable interest is between the owner and the insured.
Posted: Fri Dec 02, 2011 06:40 pm Post Subject:
You can not be the beneficiary at the time of application
Anyone or anything may be the beneficiary at any time in the life of an insurance contract -- there is NEVER any requirement for insurable interest between the insured and the beneficiary.
As dfggsdhj has stated, the only concern is that AT THE TIME OF APPLICATION / POLICY ISSUE there must be insurable interest between the owner and the insured. If there is no insurable interest, there can be no contract of insurance -- this is a requirement of the Insurance Code in every state.
When the owner/applicant is someone other than the insured at the time of application, the insured must consent to be insured, and voluntarily participate in the application process. After the policy is issued, the owner may be changed, and the new owner is never required to have insurable interest in the insured.
TaxFreeIncome has it backwards. Just like his idea that life insurance is designed to provide tax-free income for the owner.
Posted: Fri Dec 02, 2011 06:46 pm Post Subject:
In this situation their is definitely insurable interest
In this situation, there MAY BE insurable interest, but it is certainly NOT definite. The law does not recognize, on its face, insurable interest between boyfriends and girlfriends. There must be a "reasonable expectation of pecuniary interest" between the owner and the insured.
Insurable interest probably does exist in this situation, but it would absolutely exist with the benefit of a valid marriage license. It is up to the insurance company to determine insurable interest within the confines of the Insurance Code of the state in which the policy is issued.
Posted: Fri Dec 02, 2011 07:44 pm Post Subject:
Max,
You are putting words in my mouth, I NEVER SAID OR SUGGESTED THAT LIFE INSURANCE IS DESIGNED TO PROVIDE A TAX FREE INCOME. I said that a benefit SOME life insurance policies is that fact that it can provide a tax free income. NOW YOU CHIMED IN WITH OUR ANAL ANALYSIS and declared that it is not an income and that it is a loan. WHO GIVES A ****! All that matters is that the client understands the situation. It is income replacement for them. As long as the product is sold correctly and as long as the client understands and funds the policy properly WHO CARES! ANAL people like you! You know, you are what is wrong with this world. You have to be a LIBERAL! When you were a kid, I bet you were the one who ran to the teacher saying "Freddy pinched me!"
When I sell life insurance to provide a TAX FREE BENEFIT (INCOME), my clients understand that the money they are receiving is in the form of a loan that deducts against the death benefit at the time of death! They understand this! When I sell this type of policy, it is NEVER designed to ever cover any legacy needs! I sell other policies to cover those needs. Maybe you have forgotten that life insurance to cover a need? Let me guess, you never sell life insurance to provide an income at retirement. You sell mutual funds and variable annuities so that the people can lose their money and not have a retirement. Stop putting words in my mouth Max and will you once just once admit you are wrong! I know it isn't in your make up to admit that, you are a Liberal.
Posted: Sat Dec 10, 2011 09:22 pm Post Subject:
All that matters is that the client understands the situation. It is income replacement for them.
Sorry I missed this.
WRONG. Life insurance is not income replacement for the client, it is income protection for those left behind.
You want income? Buy an annuity. That will provide you with income.
Buy life insurance and borrow all the money out of the policy? No one gets a dime when you die. That's not income, that's robbery.
Posted: Mon Mar 19, 2012 11:17 am Post Subject:
hi,
Insurance is based on relationship, they will accept the policy based on relationship.
Posted: Sat Feb 16, 2013 05:25 pm Post Subject:
You people are just money hungry and/or naive. Don't you watch ID Discovery? Max's statement was the most accurate. And I'm pretty sure that when he said "married", he was also referring to common law marriage. So a couple has to have lived together for 7 years before applying for the insurance. And second, why would this girlfriend even ask this question in the first place? It should be her boyfriend to decide whether or not he wants the coverage and to name her as the beneficiary. Not her.
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