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How exactly does life insurance work?


KingRevolver
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But a guy could very easily buy a life insurance policy on his  life and own it and name the girl a beneficiary.

She could do the same - end of problem.  You just cannot own a life insurance policy on someone else's life without an insurable interest.

 

There's your work around Kinger

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Only way would be if the man and woman were business partners and they did business insurance because of the ownership and obligations on a mortgage.  Or, let's say the chick was a "key man" in a business operation and ran a lot of things it might show an insurable interest that way.  

 

I assume you guys are talking the guy owns the policy on the chick and names himself the beneficiary - controls cash value if any and vice a versa.  

 

But a guy could very easily buy a life insurance policy on his  life and own it and name the girl a beneficiary.

She could do the same - end of problem.  You just cannot own a life insurance policy on someone else's life without an insurable interest.

 

Bingo.

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