Insurable Interest

[smokin goose]

Correct me if I'm wrong.

I sold an rop term life to a guy. He insured his own life. He owns the policy. He is the payor. He made his girlfriend the beneficiary.

I get an email from underwriting stating:

"Please provide the insurable interest of the beneficiary, ______"

Can't he make anybody he wants the beneficiary?

 

[Tahoe Ray]

Correct me if I'm wrong.

I sold an rop term life to a guy. He insured his own life. He owns the policy. He is the payor. He made his girlfriend the beneficiary.

I get an email from underwriting stating:

"Please provide the insurable interest of the beneficiary, ______"

Can't he make anybody he wants the beneficiary?

No. Otherwise, STOLI (stranger originated life insurance) would be legal.

If the boyfriend supports the girlfriend and she relies on his income for support, it shouldn't be a big issue.

Don't forget, you can always change beneficiaries after issue...

 

[LGilmore]

Fiancee. try that next time. Insurable interest.

 

[Aram Fingal]

If she is a long time girlfriend, just explain to the underwriter that while they are not legally married she is still his spouse. This has gotten so common it shouldn't be a problem. They probably just need to make sure that's what the situation is so they don't end up with someone convincing their new boyfriend (or girlfriend) to buy life insurance with them as the beneficiary right before said boyfriend has a terrible "accident".

 

[Josh]

Fiancee. try that next time. Insurable interest.

There are a number of women that have upgraded to fiancee when their boyfriends got life insurance from me

Fiancee goes through underwriting pretty easy.

 

[smokin goose]

They've been dating for seven years. He told me they'll prolly get married someday but no date has been set.

 

[Jerard]

They've been dating for seven years. He told me they'll prolly get married someday but no date has been set.

Why buy the cow when the milk is free.

 

[FEproducerKen]

Why buy the cow when the milk is free.

If her parents are L-O-A-D-E-D, then buy the cow.

 

[scagnt83]

They've been dating for seven years. He told me they'll prolly get married someday but no date has been set.

If your state recognizes common law marriage then just say they are common law married (after 7 years its true if KY recognizes it).

Or the fiance route always works and is never questioned.

Down here in SC your common law married after like 2 years or something.

Legally, they couldnt deny that there is insurable interest with the common law route.

 

[pcbinsurance]

Some good info on domestic partnerships (which don't have to be same sex):

Domestic Partnership Benefits | Nolo.com