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It is necessary to have an "insurable interest" in the life of the proposed insured. Stated otherwise, you need to have a "stake" in his/her continued life. That stake can be financial (such as a business partner), or familial (spouses have insurable interests in each others lives), or some combination.

All insurance companies require the existence of an insurable interest, and most states (which regulate insurance) require that it exist at the inception of the policy.

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14y ago

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