From This is Money:
Malcolm Tarling at the Association of British Insurers told me: ‘Centuries ago it was not uncommon for people to insure the life of another person and then bump them off and collect the insurance payout.’ Happily, this example of private enterprise was outlawed by the Life Insurance Act of 1774.
The only time someone else can take out this type of insurance is when they can show that they have a significant financial interest that would suffer if you were to die.
This so-called ‘life of another’ policy would still require his signature as ‘the life to be assured’.
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