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Why can anyone take out a life insurance policy on anyone?
Actually, in order to buy life insurance on another person you need an insurable interest in that person, meaning you stand to lose financially if that person were to die.
In addition, you usually need the other person;s signature and permission to take out life insurance on the person.
Also, the person you want to insure for life insurance may be required to answer some health questions and take a physical exam to find out if the person does qualify for life insurance.
Here’s an article that further explains .
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