Jessica Simpson Father Buys Life Insurance on her

Joe Simpson secretly took out a $4.5 million life insurance policy in daughter Jessica�s name with himself listed as the sole beneficiary, a source tells RadarOnline.com exclusively.

The policy was drafted around 8 years ago, the source says, and The Dukes Of Hazzard star and her mom Tina only found out about its existence last week.

Tina�s attorneys at Dunnam & Dunnam were made aware of the policy�s existence in a meeting with the Simpsons� business manager, David Levin, and the source says that both Jessica and Tina are �furious� that Joe had done such a thing without the knowledge of either of them.

�Tina found out about yet another one of Joe�s secrets and couldn�t believe what she was hearing,� the source, who is close to the Simpson family, tells RadarOnline.com.

�It came out in a meeting with David and her attorneys last week that Joe set up a life insurance policy for Jessica 8 years ago that made him the sole beneficiary.

�It was pointed out to Tina that as Jessica�s manager Joe wasn�t doing anything underhanded by taking out a policy to protect his biggest income source, but she was absolutely furious that Joe did it without consulting her or Jessica.

So here it is the question:

Can I buy life insurance for someone else?

The simple answer is, �yes�. You are allowed to pay the premiums and collect the benefits on a life insurance policy that insures a life that is not your own. For example, many people have life insurance on their children. Another example is that companies sometimes buy life insurance on their key employees so that they can recover from the negative financial effect that losing that employee might cause.

There are two things that you need to consider. One, you are going to need to have the consent and participation of the person whose life is being insured. Two, you are going to need to provide a reason to the insurance company that you will be affected financially if the insured dies. The only exception to this is life insurance on children. Usually the parent of a minor can purchase life insurance on the child without any additional reasons. If you have nothing to lose from the death of the person, then you don�t really have an �insurable interest� and in such cases would only gain financially from the death of the insured. Just being a relative does not necessarily create an insurable interest. You will have to prove that you are somehow financially affected by the death of that particular relative.

Speak to a life insurance specialist at Mintco Financial to find out more on buying life insurance on someone else.


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