Murder for Insurance

[McCoy]

So I like to watch these true crime stories like Dateline Real Life Mysteries and who doesn't love Bill Kurtis.

It's not unusual when watching a story about one spouse killing another to hear that the suspect took out multiple life insurance policies for lotsa cash on their unsuspecting soon-to-be victims.

My question is, why is this allowed? How can it be legal to take out life insurance on someone, especially a legal adult, without their signed consent, not to mention their actual knowledge?

And even if it is and always has been legal, shouldn't the preponderance of murderous insurance fraud over the years be enough to make it illegal?

 

[Spot's Meow]

I too am addicted to watching those kinds of shows. If I remember correctly, most of the time the spouse is aware of the policy and agrees to sign after being convinced by the murderer. They probably tell them they're doing it for the kids or something.

 

[Yoda]

McCoy, my good friend. There is something I need to show you. Deep in the woods. In Alaska. No, don't tell anyone where we're going. You will understand when we get there.

 

[STR]

And even if it is and always has been legal, shouldn't the preponderance of murderous insurance fraud over the years be enough to make it illegal?

Insurance companies are the most clinical, calculating, exacting organizations you will ever deal with. They expect a percentage of life insurance policies to be murder-frauds. They, in fact, price that into the policy, along with any other kind of fraud as well as the normal things you're supposed to be getting the policy for. The fact that life insurance is still pretty damn cheap as far as insurance goes is a testament to the fact that this really isn't much of a problem at all.

 

[Bloodwhiner]

You do know many mortgage brokers take out policies on their customers? So if your in a foreclosure issue, I'd be very careful about walking through the bank parking lot. You may be worth more than your house

 

[Alpha Romeo]

So I like to watch these true crime stories like Dateline Real Life Mysteries and who doesn't love Bill Kurtis.

It's not unusual when watching a story about one spouse killing another to hear that the suspect took out multiple life insurance policies for lotsa cash on their unsuspecting soon-to-be victims.

My question is, why is this allowed? How can it be legal to take out life insurance on someone, especially a legal adult, without their signed consent, not to mention their actual knowledge?

And even if it is and always has been legal, shouldn't the preponderance of murderous insurance fraud over the years be enough to make it illegal?

Thats not how it works. A person takes out a policy and designates a beneficiary. Typically, it will be the spouse or child.

I couldn't take insurance out on you and name myself as a beneficiary absent your consent, but you could do that and name me as a benne.

 

[Holdfast]

In the UK it is possible to take out life insurance on someone else, but there must be "an insurable interest". You can't just randomly take out a policy, and you can't do for friends, casual acquaintances, colleagues, and the like.

If there is a genuine insurable interest, it's still not easy, as almost no insurer will insure a 3rd party for first-life cover without their consenting to the release of their medical records and possibly financial records and maybe needing an in-person physical exam.

Usually, if it's found out that a policy was somehow taken out without their knowledge, the policy will be declared void. The reason is actually not a moral one, but because it's viewed by the insurance industry as a gambling bet on their death, not an insurance policy.

 

[1001001]

So I like to watch these true crime stories like Dateline Real Life Mysteries and who doesn't love Bill Kurtis.

It's not unusual when watching a story about one spouse killing another to hear that the suspect took out multiple life insurance policies for lotsa cash on their unsuspecting soon-to-be victims.

My question is, why is this allowed? How can it be legal to take out life insurance on someone, especially a legal adult, without their signed consent, not to mention their actual knowledge?

And even if it is and always has been legal, shouldn't the preponderance of murderous insurance fraud over the years be enough to make it illegal?

Thats not how it works. A person takes out a policy and designates a beneficiary. Typically, it will be the spouse or child.

I couldn't take insurance out on you and name myself as a beneficiary absent your consent, but you could do that and name me as a benne.

You certainly can buy insurance policies on other people and name yourself the beneficiary. But as Holdfast pointed out, generally you have to have "insurable interest". This is true in the United States as well.

http://www.slate.com/id/2189278

PS: I'm addicted to these kinds of shows too. I love The ID Channel.

 

[McCoy]

McCoy, my good friend. There is something I need to show you. Deep in the woods. In Alaska. No, don't tell anyone where we're going. You will understand when we get there.

You have to marry me first. Or at least propose.

You certainly can buy insurance policies on other people and name yourself the beneficiary. But as Holdfast pointed out, generally you have to have "insurable interest". This is true in the United States as well.

http://www.slate.com/id/2189278

But that's just it, isn't it? Spouses have this interest. And they are also the first suspects in a murder. Seems like a conflict of interest to me.

Edited to ask: what about in the US where most of the crimes in these shows take place?

 

[1001001]

Well, as was pointed out earlier, insurance companies are all about playing the odds. They wouldn't issue these policies unless they made money. If someone has a big life insurance policy on someone else, and that second person dies suddenly, you can bet the police and insurance investigators will check it out.

Insurance companies routinely withhold payment until the beneficiary is cleared, should any investigation arise.

It's really a lame scheme, hard to get away with. That's why we see them get caught on TV!

Ultimately insurance murders must occur on a very tiny fraction of all policies.

 

[Kail]

Ever heard of peasant insurance? It's the practice of large corporations to take out policies on it's employees, making itself the beneficiary. So the company can make huge profits off of the death of it's employees, while the families get zip.

 

[McCoy]

Well, as was pointed out earlier, insurance companies are all about playing the odds. They wouldn't issue these policies unless they made money. If someone has a big life insurance policy on someone else, and that second person dies suddenly, you can bet the police and insurance investigators will check it out.

Insurance companies routinely withhold payment until the beneficiary is cleared, should any investigation arise.

It's really a lame scheme, hard to get away with. That's why we see them get caught on TV!

Ultimately insurance murders must occur on a very tiny fraction of all policies.

But if it was illegal wouldn't even that small percentage go away? Wouldn't a change in the law save lives, even just one is worth it? And it wouldn't cost the insurance companies any business?

 

[BolianAuthor]

This is why I will never buy life insurance... especially if I get married. I will also never ever sign a prenup. Never.

If you get the Lifetime Movie Network (the men are slime channel), you can see lots of movies about women killing their evil men to get their insurance money.

 

[Marten]

I'm not sure if it's possible to insure someone else here, but I am certain that you don't get the money if you are convicted of killing the person in question.

Actually, there is an interesting case right now. A man murdered his ex girlfriend, and he was still the benefactor for her insurance (100k$). However, screw-ups from the police led to that he was cleared of all charges except moving the dead body (Resting in peace is apparently a serious thing here). The question is now if he can claim that insurance money.

 

[McCoy]

Just seems to me that if you couldn't get the policy in the first place, it would prevent the murders. Just divorce and take half, it's better than nothing.

 

[Nerdius Maximus]

So I like to watch these true crime stories like Dateline Real Life Mysteries and who doesn't love Bill Kurtis.

It's not unusual when watching a story about one spouse killing another to hear that the suspect took out multiple life insurance policies for lotsa cash on their unsuspecting soon-to-be victims.

My question is, why is this allowed? How can it be legal to take out life insurance on someone, especially a legal adult, without their signed consent, not to mention their actual knowledge?

And even if it is and always has been legal, shouldn't the preponderance of murderous insurance fraud over the years be enough to make it illegal?

Companies do that, too. Then they try to stress you out so that you'll die of a heart attack so they can cash in. Ka-ching!

 

[Pegaritaville]

Just seems to me that if you couldn't get the policy in the first place, it would prevent the murders. Just divorce and take half, it's better than nothing.

Sometimes it's the insurance companies that help catch murderers, or at least keep cases going (large insurance companies have fairly big investigative divisions). Insurance companies are loathe to pay out when they don't have to and will go to great lengths to keep from doing so. There are many instances where an insurance company's refusal to pay have made cops take a second look at things.

Seems to me if you're hell-bent on murder, the last thing you want to do is take out an insurance policy on your intended victim. Just raises another red flag.