# Taking out Life Insurance on someone else

**URL:** <https://boards.straightdope.com/t/taking-out-life-insurance-on-someone-else/638395>\
**Category:** Factual Questions\
**Created:** [October 21, 2012, 7:49am UTC](https://boards.straightdope.com/t/taking-out-life-insurance-on-someone-else/638395 "2012-10-21T07:49:20Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![Pacific420](https://avatars.discourse-cdn.com/v4/letter/p/e9bcb4/32.png) [@Pacific420](https://boards.straightdope.com/u/Pacific420)\
**Post date:** [October 21, 2012, 7:49am UTC](https://boards.straightdope.com/t/taking-out-life-insurance-on-someone-else/638395/1 "2012-10-21T07:49:20Z")

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My sister-in-law and her husband are alcoholics, I’ve known my S-I-L since I was 13 so she means something to me.  
I’m worried that should she die her husband will not have the means to bury her, I’m not sure about bringing this up with my wife (SIL’s sister) but I was thinking that I could take out a life insurance policy the SIL, not a fortune, but enough to have a decent send off should she die.

I’ve heard of Walmart taking out policies on their employees and the Conservative Gov’t had one on Chuck Cadman (yah Harper and Co. are THAT low) but is this a common practice.

I’m not interested in making money, 5-7K dollars (CDN) for a casket/cremation and a service.

Tks

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**Author:** ![The\_Niply\_Elder](https://avatars.discourse-cdn.com/v4/letter/t/8e8cbc/32.png) [@The\_Niply\_Elder](https://boards.straightdope.com/u/The_Niply_Elder)\
**Post date:** [October 21, 2012, 8:21am UTC](https://boards.straightdope.com/t/taking-out-life-insurance-on-someone-else/638395/2 "2012-10-21T08:21:46Z")

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Im pretty sure you would need her consent for that.

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**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\
**Post date:** [October 21, 2012, 8:27am UTC](https://boards.straightdope.com/t/taking-out-life-insurance-on-someone-else/638395/3 "2012-10-21T08:27:15Z")

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You need to have an insurable interest in the person in order to take out a life insurance policy on them. That means you need to demonstrate that you would suffer some kind of financial loss if they die. If you are not a dependent or a spouse or cohabitor, that’s going to be tough to prove.

In most states, you would also need her consent on the policy.

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**Author:** ![Pacific420](https://avatars.discourse-cdn.com/v4/letter/p/e9bcb4/32.png) [@Pacific420](https://boards.straightdope.com/u/Pacific420)\
**Post date:** [October 21, 2012, 8:30am UTC](https://boards.straightdope.com/t/taking-out-life-insurance-on-someone-else/638395/4 "2012-10-21T08:30:24Z")

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Thanks Niply and Fiedo,  
I guess I better start stashing a few bucks away here and there, :eek:

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**Author:** ![brazil84](https://avatars.discourse-cdn.com/v4/letter/b/8491ac/32.png) [@brazil84](https://boards.straightdope.com/u/brazil84)\
**Post date:** [October 21, 2012, 8:55am UTC](https://boards.straightdope.com/t/taking-out-life-insurance-on-someone-else/638395/5 "2012-10-21T08:55:38Z")

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You might call the local funeral home and see if you can arrange a pre-payment plan.

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**Author:** ![Pacific420](https://avatars.discourse-cdn.com/v4/letter/p/e9bcb4/32.png) [@Pacific420](https://boards.straightdope.com/u/Pacific420)\
**Post date:** [October 21, 2012, 9:17am UTC](https://boards.straightdope.com/t/taking-out-life-insurance-on-someone-else/638395/6 "2012-10-21T09:17:02Z")

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Thank you!

That never occured to me and it’s a great idea!