Can I take out a Life insurance policy on someone I am not related to?

Yes, you may be able to take out a life insurance policy on someone you are not related to - the determination is made by the insurance company as to who you may insure. There must be an "Insurable Interest" in order to insure someone else's life. Insurance Interest means the expectation of a monetary loss that can be covered by insurance. The following are examples of Insurable Interest regarding life insurance: 1. Parent and child, husband and wife, brother and sister have an insurable interest in each other because of blood or marriage. 2. Creditor-Debtor relationships give rise to an insurable interest. The creditor or loan provider can be a beneficiary for the amount of an outstanding loan. 3. Business relationships give rise to an insurable interest. An employee may insure the life of an employer, and an employer may insure the life of an employee.