Can someone have life insurance on me without my consent?

Question

My inlaws are crazy. No not like wacky like mean, vindictive, you wouldn't believe it crazy. My husband purchased a sport car about 4 years ago, evidentially my inlaws started a life insurance / disability policy on him. The bill for some reason gets mailed to us, but they pay it. When asked about it they said they got it incase my husband killed himself in his car.

Can you take out a policy on an adult, over 18 years of age, without consent? What is this Disability income on the bill that is separate from the Level Term life???

They are not in poor financial shape, his father is a doctor and they have an oceanfront home. I have everything situated for our family's burial arrangements.

Thoughts??

Answer 1

parents can do it only on the kids and in fact it can be like what you stated but not anyone can do this. we have it on all our boys and their kids. death insurance for them.

Answer 2

To take out a life insurance policy, you have to have an "insurable interest."  Meaning that your life and its quality would be impaired if the insured died.  If they want to insure him, their name should be on the bill, not yours, make them correct it.  Apparently, they are also taking out disabilty insurance at the same time.

Answer 3

YES, IT IS POSSIBLE TO TAKE OUT INSURANCE ON ANYONE IN YOUR FAMILY WITHOUT CONSENT. WHY ARE YOU UPSET BY THIS, IT'S HIS PARENTS. IF THEY WANT TO HELP YOU IF SOMETHING SHOULD HAPPEN I'M SURE YOU WON'T TURN DOWN THE MONEY RIGHT.

Answer 4

The laws on this changed fairly recently.  In the past, you could buy a life insurance policy on someone without their knowledge.

Now, if the owner of the policy is different from the insured, then you must have the insured's permission.

Also, do you live in a community property state?  In that case, you must also have the permission of the spouse if that person is not the beneficiary of the policy.

Answer 5

You have some answers with incorrect information.

A parent can take out life insurance on a minor child without consent. If the child is over age 18 the child has to sign the application.

If they forged his signature then you have a case.  He can call the insurance company and tell them a policy was taken out without his consent.

You only have to have an insurable interest when the policy is issued.  A parent always has an insurable interest in their child even when the child is an adult. Once the policy is issued the insurance company can't deny the claim unless the death is due to suicide in the first two years of the policy.

Even when someone is murdered by the beneficiary the policy still pays it just does not pay the beneficiary.

It sounds like you need to sever all ties and purchase your own life policy on your husband. I always recommend that the wife owns the policy on the husband and vice versa. This way only the policy owner can change the beneficiary. If his parents really just want to help out they could make you the policy owner and they could be the payor.

Same goes for the DI he would have needed to sign the application and he would get the benefit. So this policy would be a great thing to keep.

Answer 6

Yes someone can take out life insurance on you (or your husband) without your consent. However, if your husband dies the insurance company will question whether or not his parents have a legitamate claim. It is likely that the claim would be denied and the denial would hold in court.

They're wasting their money and the insurance company is more than happy to let them.