Life insurance can provide financial security in case someone you’re dependent on dies or is incapacitated…but the concept works both ways. Someone close to you could possibly be holding a life insurance policy in your name in case you become the dearly departed. They may even be patiently making payments as investments in your death, just waiting for the day they read the golden obituary and profit from your demise. Is there any way to know if someone has taken out a life insurance policy on you?
The first thing to know about third-party life insurance is that the policy holder must have what is called an insurable interest in you, that is, their financial standing would be significantly harmed by your death. Such parties include spouses, children, business partners and even employers in some cases. In fact, you may be worth more dead than alive to some people.
Regardless, the easiest (and most difficult) way to find out if someone is holding a policy on your life is to simply ask each of these people in your life about it. Of course, a person concealing a monetary interest in you ceasing to live may not be forthcoming about it, so you may want to consider employing outside assistance in your investigation. You can always get your own life insurance quote from AAMI, by visiting their site today.
There are many utilities online that allow you to request a search of the major insurance providers’ databases in order to determine whether there is a policy in your name that you are unaware of. You just provide your basic information such as your full name, birthdate and place of birth and they inquire at all the providers on your behalf, saving you countless hours of research. The companies will then contact you should they find a policy in their records that pertains to you without your knowledge.
There are also utilities that maintain a record of all insurance applicants over the past 7 years and can tell you if an application was made in your name. These services commonly require a fee, but the knowledge of who stands to profit from your last breath could be much more valuable.
Any life insurance policy taken out on you requires a medical exam or at least your signature unless you are under the age of 15 and are named by your parents as an insured party, so be wary of unsolicited implorations to visit the doctor for a checkup or suspicious requests for your autograph.
It is fraudulent to take out a life insurance policy on another person with the intent of profiting from it, so it is important that you report any incidence of this to the authorities. It is technically possible for a person to invest in your mortality, but fortunately there are ways to detect such malicious activity before it’s too late.