Seems like it would be an easy way to cash in on inevitable turf wars. Why isn’t this done more often? Or is it?
Because life insurance policies require you to be legit. You need to show documentation for legal income, be subjected to a paramedical exam, etc.
You need to be able to provide proof of an insurable interest to buy life insurance on another person. It’s rather difficult to supply employment records such as paystubs and tax forms if you manage a staff of crackslingers on the corner.
What about those TV ones that say “All we need is a social security number and a signature”?
According to Freakanomics a couple of years ago, most gang members are making less than minimum wage, and living with their mothers. I’m not sure there is a lot of margin there.
You mean Sinatra and Clooney lied about that Cool gangster lifestyle ?
Lots of parents of gang members take out life insurance on their kids. Anecdote only, but at least where I work this is true.
If they are over 18 and have been convicted of a felony it can be almost impossible to get life insurance for a while after that conviction. If they are under 18 only a parent or guardian can take out a policy on them. A Grandparent in some states.
Those aren’t million dollar policies - they’re smaller ($50k-$100k) policies with higher premiums that typically won’t pay benefits for 2-5 years after you take them out (they’ll refund your premiums instead of paying).
I think policies typically exclude death or injury that occurs while participating in illegal activity.
They may not even pay that much. Very cheap policies are often “burial insurance” - they pay a few thousand dollars, enough to cover the cost of a decent funeral and not much more.
Usually it’s 25k max on a guaranteed issue policy like that. And it will always have a modified benefits period, though that is typically only for death by illness.
This is not true anymore for the most part and even where it is true contestability periods are only 2 years from policy effective date in all 50 states. After you have a policy 2 years the policy has to pay no matter what.
Is it illegal to wear the wrong colors?
If life insurance companies are anything like health insurance companies, they’d give it a shot.
ETA: What are the gangs gonna do? Sue the insurance company? Attack the executives who live several states away without a support network?
Why not? Gangs file lawsuits.
Well, sure. But the Sharks and Jets really do dance in the streets of NY.
“And he was just running a late-night lemonade stand, your honor.”