Insurable Interest
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Insurable Interest
Can I take out an insurance on the co-owner of a property without their knowledge?
Asked on June 28, 2009 under Real Estate Law, Massachusetts
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
In order to take out a life insurance policy on someone else, the purchaser must have a reasonable expectation of profit or benefit from the continued life of the insured, i.e, an insurable interest. Although most people think of the familial relationships for insurable interest - husband/wife, child/parent, etc., a business relationships or financial dependency can create an insurable interest. There should be an economic benefit from the continued life and good health of another which creates an insurable interest in that person’s life.
You state here that you are co-owners of property. This could conceivably create financial dependency. However, I am not admitted in Massacheusetts and honestly, you will not know unless you try. Go and see a broker and see if your relationship creates the insurable interest. There are many questions that you will be asked so that they can be sure it exists. If it does not exist there is no policy.
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