Florida Life Insurance Rules: Who You Can Insure and When

Legal Requirements for Insuring Another Person in Florida

In Florida, you can purchase a life insurance policy on anyone only if you have a demonstrable insurable interest and obtain the insured's written consent. Insurable interest means you would suffer a genuine financial loss or other substantial hardship if the person dies. Without it, the policy is void and may be considered a wager on life, which Florida law prohibits.

When Insurable Interest Exists

Typical relationships that satisfy insurable interest include spouses, domestic partners, parents and children, business partners, and key employees whose death would financially impact the company. Courts also recognize interest in a loan or mortgage where the death of the borrower could affect repayment.

Consent Is Mandatory

Florida statutes require the person being insured to sign an application or a separate consent form before the policy becomes effective. The insurer must keep this signed document on file. If the insured is unable to sign due to incapacity, a court‑appointed guardian or legal representative may provide consent.

Restrictions on Insuring Minors

Parents or legal guardians can obtain life insurance on children, but the same insurable‑interest and consent standards apply. The guardian's signature serves as consent, and the policy's face value is typically limited to avoid speculative wagering.

Policy Ownership and Beneficiary Designations

The policy owner—who pays the premiums—does not need to be the insured, but they must meet the insurable‑interest test. Beneficiaries can be anyone, but the owner cannot name themselves as the sole beneficiary of a policy on a non‑related individual without proving a valid interest.

Comparative Overview