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How can I take out life insurance on another person?

My father owes me money and I owe alot of money because of him. I'd like to be able to take out life insurance on him incase he dies before he pays me back. How would I go about doing this? I'm trying to figure out how to take the insurance out on him (since he owes me). Not have him get life insurance and then make me the benifactor himself.

Public Comments

1. I think you can purchase a life insurance policy on the life of your father. You would be the owner and beneficiary, and his life would be insured. I think you would be responsible for paying the premiums. You need an insurable interest in order to insure someone's life. This means you are a creditor or rely on the insured person for some kind of income or money owed you. Here is a complete explanation of insurable interest: What is Insurable Interest? Insurable Interest is the expectation of a monetary loss that can be covered by insurance. What is an Insurable Interest as it relates to a Life Insurance Policy? When you buy a life insurance policy there must be an insurable interest on the person being insured on the life insurance policy. Types of Insurable Interest for a Life Insurance Policy: Your Own Life - Every person has an unlimited insurable interest in his or her own life. The insured person can choose whoever they want to be the beneficiary (who the proceeds are paid to upon the insured’s death) of their life insurance policy. Parent and Child, Husband and Wife, Brother and Sister - All have insurable interest in each other, because of blood relation or marriage. Your creditors - All creditors may have an insurable interest in you if you owe them money. The creditor can be the beneficiary of your life insurance policy for the amount of any outstanding loan. Business relationships - May create an insurable interest. An employer may insure the life of an employee, and an employee may insure the life of an employer. Insurable interest must exist at the time the life insurance policy is purchased. However, for a life insurance policy, insurable interest is not required at the time of loss. Example: - A man may insure the life of the woman he is engaged to. If they marry and then are divorced, he can continue paying the premiums. If his ex-wife dies after the divorce, he would receive the death benefit. Review: All of the following may have life insurance beneficiary insurable interest status: Children of a parent, Parents of a child, Husband for a wife, Wife for a husband, Creditor for a debtor, Employer for an employee, and Employee for an employer. In order to purchase a life insurance policy, the person buying the policy must have an insurable interest in the person insured on the life insurance policy. I hope that helps! Take care and best of luck. P.S. - If you want to compare quotes I recommend InsureMe - They offer you the five best life insurance quotes from top-rated life insurers. To request a quote go to http://www.insureme.com/landing.aspx?Refby=613403&Type=life