Can I Take A Life Insurance Policy Out On My Boss And Name Myself As The Beneficiary?
Posted January 29, 2010 – 4:22 am in: structured settlements FAQI work for a sole practitioner. I have a financial interest in his life. If something were to happen to him, I would be out of a job.
Tags: Beneficiary, Boss, Insurance, Life, Myself, Name, Policy, Take
7 Comments
Yes you can… The main point is do you have an insurable interest in his ability to work… and by the sounds of it … yes you do.
what you’re talking about is almost ‘key man’ cover, where it’s quite common for firms to take out insurance against a ‘key man’ in the organisation becoming unable to work through death or illness.
Since life insurance would only pay out if he dies, you might want to look into this sort of cover as well as it would also pay out if he becomes too ill to work, but lives for years. I’m not from the US, but I do know that under NY state law you need his permission and I would imagine it’s the same in most others as well.
No idea how much it will cost, depends how healthy he is for one thing… but it never hurts to get a quote.
A good broker is always a godsend when looking for something a little out of the ordinary…. be wary of tied agents who will just try to sell you what the company they represent has that’s closest.
Just type KEYMAN INSURANCE ‘YOURSTATE’ into google for info (don’t buy on-line… just research)
hhhmmmm. when i first saw your question I immediately thought you were mad, i thought you would’nt have had an interest in his life but when you put it like that I suppose you do. i really have no idea but its a great question! Ill be looking back for the answer!
I doubt it, that’s not the point of having life insurance.
You better make sure you have a backup plan other than SSI or Unemployment checks.
Sure, as long as you have his permission and consent, and cooperation.
Not without his concurrence.
Technically you could have insurable interest, but it depends on what your intentions are with the company.
IF you are looking at insuring the boss so if he dies you would have enough money to buy the business and keep it going, then yes, you could get insurance on him. This would be like a buy/sell agreement.
If you are looking at insuring your boss just becuase you’re out of a paycheck and you want somethign to tide you over until you find a new job…probably no dice.
Your best bet would be to talk to your boss and ask him what happens if he dies or becomes seriously ill or disabled (being ill or disabled can collapse a business as well). Talk to him and see who would take over the business. If you’re interested mention it as some kind of buy/sell type agreement where if he dies you would have the option of buying it out and keeping it going.
Key person insurance is typically something an owner would take out on a key employee, not something an employee would take out on the boss and name himself the beneficiary.
You would have to have his permission. You can take out life insurance on anyone and name yourself as the beneficiary. You don’t have to be related.
If you are trying to get a lot of insurance, like over $100,000, the insurance company will need to meet with your boss and do blood tests on him to determine if they will cover him and how much the rate would be.