Question

From the readings, explain the relationship of ethics to the difference between purchasing life insurance on yourself versus someone else. (Your answer should be a minimum of 2 well-reasoned paragraphs. 10 Points)

Answer 1

Well there is a difference between purchasing life insurance on yourself and when its is being done for some one else. When it comes to purchasing life insurance for oneself, the person analyses the possibilities and each every condition. And when it comes to purchasing the same for someone else if the person purchasing it has insurable interest and consent of the person on behalf of whom he is buying his life insurance then it would be ethical and valid The ethical practices while purchasing life insurance for oneself includes: 1. Analysing an examining each and every possible situation and then deciding what would be best. 2. The purchase should be totally legal, no illegal practices should be implemented. 3. Violation of the insurance policy shall not be done, as it would cost a compensation 4. If its being purchased through an agent then the purchaser should first analyse the agent and check on him then invest his money. 5. The purchaser should be known to each and every condition of the insurance policy which he is opting to buy for. The ethical practices while purchasing life insurance for someone else. 1. The person buying it should provide the evidence of insurable interest of the person for whom he is buying it before he can take out the policy on some other person 2. The person for whom it is being purchased should be totally aware of the facts and conditions pertaining to it. 3. The persons involved in the purchasing process should adhere to the strict rules of Financial Conduct Authority. 4. The purchaser should be aware of the amount of insurance coverage which can be bought on another person. 5. Any illegal activity or any inappropriate manner being used for the consent of the person should be punishable as an offense.