You can buy life insurance for other people if there’s an insurable interest. You actually used to be able to purchase life insurance on any other people, alth

You can buy life insurance for other people if there’s an insurable interest. You actually used to be able to purchase life insurance on any other people, although you’re correct on why that’s a bad idea. The darkest examples would be companies in high risk work buying life insurance for workers, which reduces the incentives to provide adequate safety equipment.