Can You Buy Life Insurance On A Stranger. And you’ll need what insurers call insurable interest in the life you’re trying to insure. Answered on july 16, 2013.
As an example, you cannot legally buy life insurance on your mom’s elderly neighbor when you have no stake in the neighbor’s continued longevity. Aside from the fact that investing in something that only pays off when somebody dies is kind of creepy, stranger originated life insurance is a risky investment.
Anyone Who Has Dependents Needs Life Insurance
But then, they would not be a stranger, unless the loan was done through a third party. But you can’t buy a life insurance policy on a mere acquaintance or stranger.