Could someone take out a life insurance policy on your behalf and then profit off your passing? Let’s take a closer look at the criminal aspect of life insurance.
Chances are you’ve seen shocking headlines about cop-turned-serial-killer Rosemary Ndlovu or perhaps you saw the gripping documentary about her crimes on Showmax. If not, the long and short of it is that she took out multiple funeral plans for her family members then killed them off one by one, claiming millions along the way.
Unlike Rosemary, chances are you’re not a psychopath, so you’re not likely to want to murder your family for money. But what about other people? Should you be worried that a stranger might take out a life insurance policy on you, arrange your speedy demise and then claim the pay-out? Happily, this can’t happen and it all comes down to insurable interest. Phew!
What Is Insurable Interest?
Insurable interest refers to the interest held by one person in the life of another individual. In regard to life insurance, it means that the person seeking the policy must have a valid reason for taking out insurance on another person's life. The policyholder needs to prove that it’s in their best interest that the person’s whose life they’re insuring is actually alive, whether for financial or emotional reasons.
Moreover, the consent of the person being insured must be obtained before any policy can be initiated on their behalf, except in cases where parents take out life insurance for their underage children.
In every scenario, insurable interest ensures that life insurance is used properly – to protect the financial interests of the policy owner and their beneficiaries, NOT to profit from someone else's passing.
Murder Aside, Insurance Fraud Is Never Worth The Risk
Unfortunately, according to statistics released in 2021 by the Association for Savings and Investment South Africa, insurance fraud is on the rise in South Africa. But we only know this because it means people are getting caught and insurers are now even more aware of the potential for fraudulent claims. This is why you should never lie to your insurance company as this could lead to a denied claim – or worse yet – criminal chargers down the line.
Rosemary Ndlovu’s knows this all too well. In 2021, she was sentenced to six concurrent life terms, plus a total of thirty years; 10 years for four counts of fraud, 10 years for each of the seven incitement to commit murder charges and 10 years for the attempted murder of her mother.
Get Life Insurance Sooner Rather Than Later
Needless to say, Ndlovu’s now got a lot of time to think about her evil deeds. But now that you’re here, you might be thinking about life insurance and that’s great. After all, the best time to get it is sooner rather than later because the younger you are, the more likely you’ll get to enjoy a lower premium. So, why not get a quick quote from MiWayLife? Our 4-in-1 policy includes funeral cover for your family members, all for one low monthly premium.
