It’s also illegal to take life insurance out on a stranger. You are supposed to have an insurable interest in the insured. Spouse, parent, child.
Otherwise, it could become a murder for hire free for all.
I thought Lloyds of London would insure anything...for a price...
Partially joking there. Dont know anything about the laws involved.
But more seriously asked, if the insured agrees to the beneficiary, does the law really say its still illegal? Or does one have to pay for their own insurance in any case where its not family or close relation?