Is it possible for someone to have a life insurance policy out on someone to benefit from their death?

Well, if there is no nominee appointed or the nominee dies along with the policy holder, in that case the legal heir of the policy holder would be entitled to get the death benefits. The insurer is not bound to pay to any third party posing as claimant of the deceased,without valid proof or legally authenticated by the court of law.
Well, if there is no nominee appointed or the nominee dies along with the policy holder, in that case the legal heir of the policy holder would be entitled to get the death benefits. The insurer is not bound to pay to any third party posing as claimant of the deceased,without valid proof or legally authenticated by the court of law.