May one insure the life of another without their consent?

Feb 18, 2016 | 2015, News

At present, there is no legal requirement that a person being insured consent to a policy being taken out on his or her life. A contract of insurance may operate on the life of another, provided that the policyholder has an ‘insurable interest’ in the life of that person.  Neither the Long Term Insurance Act nor its Regulations, however, deal with the issue of consent. This means that a person may insure the life of another, for vast amounts of money, without that person being notified, provided that the policyholder can show that there is an insurable interest. This lacuna, however, does not prevent insurance providers from requiring the consent of the person whose life is insured in their life insurance policies.