yea it does seem a bit unfair and going over the line from our side but when thinking about it from the other side ...the insurance company side...when someone has life insurance that insurance company will be handing over money to others upon your death, they want to make sure, as much as humanly possible that you are not going to die tomorrow, if a person dies before they make even a years worth of payments on that insurance plans its the insurance company that forks out more money than they are taking in. they want to be sure like any other company they are going to be able to pay their own bills for their company, not shell out more than they are taking in.

I think of it this way, Im not about to just hand over thousands of dollars to someone else with out knowing a few things about that person and they will be able to pay me back at least a portion of that money.

experiment done in one of my college finance classes... look at what you have for money, assets property now decide how much of that money, assets, property are you willing to part with knowing there is a possibility of not getting that money back. decide what your interview process documentation and requirements needed for someone to receive money from your own bank account upon their death.

my own answer was the person better be in dire straights before I hand over thousands of bucks that I wont see ever again. I had a new respect for life insurance companies who run this risk of someone may die before they have a chance to pay their premiums equal to what the policy will pay out to the deceased relative.