You can only buy life insurance on another individual if you have 'insurable interest.' The buyer must face financial hardship as a result of the insured person's death. For example, you may have outstanding debt, funeral expense, or missed work if your spouse or partner dies. The same is true upon the death of your child, elderly parents, or business partner. The insurable interest requirement prevents crooked individuals from buying life insurance policies for personal gain.

Next, most life insurance policies base eligibility and pricing on the insured individual's health history. A medical exam is often necessary. Blood and urine samples may be required as well. This makes it difficult to buy life insurance without your knowledge.

The signed consent form is yet another obstacle. Even companies that do not require medical exams insist on having the insured person's signature on policy approval and medical release forms. Forging your name on these documents is fraud.

There are times when it makes sense to buy life insurance on another person. However, safeguards are in place to ensure these are legitimate situations. Pursuing a policy with unlawful intentions is a felony crim.