First of all, can it even be done? Can someone purchase an insurance policy on you, without your knowledge? The answer is yes–but the circumstances are mostly fraudulent.
It is extremely difficult to get someone else’s life insured without their consent. First of all, most life insurance policies require that the person first get a medical exam. In addition, most policies would also require that person’s signature of consent that the medical information may be released. And even though the policy doesn’t require the individual to take a medical exam or sign a consent form for the release of the results, the said individual will still have to sign the policy.
Insurance companies also make sure that the person who is buying the policy for another individual has “insurable interest”. This means that if the individual were to die, the person applying for the policy would suffer a financial loss or another kind of loss.
Furthermore, a person who is insured will receive a call from the company, asking if the information they have received is correct. They will verify the information and ask if insurable interest exists. It would be extremely difficult to bypass this process, and fraud would be committed if someone else were to intercept your calls or simply forge your signature.
Children under 15 are not required to sign a form. Their parents, who are applying for them, would be the one to sign the policy. When the child is older, there’s a chance that he or she still isn’t aware that the policy exists.
Group life insurance, which is given through work, has the option of adding coverage for your spouse. This can be done without his or her knowledge, although group life insurance amounts are usually not significant in amount.
Up until 2006, companies could buy policies for their employees without the employees’ knowledge. This would allow the company to receive benefits in the case of an employee’s death. These situations generated lawsuits from those who got little or nothing when the insured individuals died. For example, a woman would get a small amount from the company her husband worked in, and would later find out that the company got a much larger amount of money because of the policy that they hid from the deceased worker and his family.
If you suspect that someone might have a life insurance policy on you without your knowledge…
Refresh your mind and try to discover how you could have arrived with this suspicion. If you think your parents insured you when you were younger than 15, then the most sensible thing to do is to simply ask them. If you think you were tricked into signing an application, then did the person have ‘insurable interest’?
If you have the right reasons to suspect that someone has a life insurance policy on you, then there are options you can explore to discover if your suspicions are correct. If you don’t know the company involved, the best thing to do is contact the Medical Information Bureau. The Bureau keeps track of fraudulent activity in the insurance industry. What they will do is search your name to see if there are any life insurance policies on you. You may also ask for help from the police, who will refer you to another agency. Finally, you may consult a life insurance expert, who can help you understand what you need to know and the other options you can take.
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