Friend As Beneficiary?

[HoosierLife]

I always thought insureable interest is directed towards the owner of the policy, not the beneficiary.

Usually, but in the case of a fraternal, I guess it’s both. RNA and Foresters both require the beneficiary to have insurable interest. They both have a list or approved beneficiaries.

 

[rousemark]

I always thought insureable interest is directed towards the owner of the policy, not the beneficiary.

Most states require a beneficiary to have an insurable interest in the life of the insured.. However, it is not set in stone as to what that is so companies set their own requirements. Some will allow a friend, others will not without a detailed explanation as to what the friend's interest is.. The only hard and fast rule is that an insured has an unlimited interest in their own life so they can leave any amount to their estate..