Can I buy life insurance for someone who doesn’t know I am buying it?
Answers | 2
When you buy life insurance, there is an exam that obtains blood and urine, plus verification of your identity. "No exam life" will require the signature of the actual applicant, so that can be an impediment to getting on the illegal side of things. For the companies that require an exam, there is also medical records release form that is part of each application, and you can see how that can confound the process from moving forward. Insurers will also consider "insurable interest" which means that there should be some kind of connection between the parties (there are three parties not including the carrier; Owner, Insured, and Beneficiary). If I want to provide money for my wife when I die, then you can see the direct tie between the parties. If I want to buy a policy on you and your name is Anonymous and your are truly anonymous, then we have no tie. There is no insurable interest, and that would be a problem for getting coverage for a stranger.
Here is an exception that gets away from private life insurance coverage. You have a group life insurance policy at work. You choose to add coverage for your spouse. There is no underwriting; no medical exam, no payment from the spouse since it can be paid for via payroll deduction if there is an employee payment at all (this can all be employer paid). Last one: a child, the Insured, can have coverage bought by a parent, the Owner, without knowing it, but that is an above board kind of thing, not the "I want some dollars when Anonymous dies" kind of thing.