Can i take a life insurace policy out my Uncle ?

frank1978

Can a nephew take one out on a direct blood relative I have his consent ?

dunstonh

As long as there is a financial interest and he agrees then yes.  Financial interest means that you have to be worse off in the event of his death.   You cant just take one out willy nilly.

Weighty1

frank1978 said:

Can a nephew take one out on a direct blood relative I have his consent ?

How are you financially dependent  on him?

If you aren't, you can't.

sheramber

He can take one out and make you the pay out to you. You can give him the money to pay the premiums if he cannot afford them.

Sandtree

frank1978 said:

Can a nephew take one out on a direct blood relative I have his consent ?

Blood relations are absolutely irrelevant, you have to prove that on the date you bought the policy that you would suffer financial loss by his death and the sum insured would need to be proportional.

So for example if you loan your mate £100,000 then you could take out life insurance on him for £100,000 because if he falls under a bus in a months time you may not get your monies back. Similarly if you're financially dependent on your uncle then you could also get insurance then.

If you have no interest then he would need to buy the insurance himself and name you as the beneficiary, you could naturally pay the premiums if you wanted.

Interestingly, for some anyway, Life insurance is very different to any other insurance as you only have to show you had the interest when you buy the policy and not on the day of the claim. Your mate pays you back 2 days before going under the bus you could choose to continue the policy. On the flip side if you sell your house and forget to cancel the home insurance and a few days later it burns down you couldn't claim on the insurance because on the date of the loss it wasn't yours so you had no interest.