@Natasha M. he is the policy holder, so even if he sells the house to you, he will be the one who gets paid.  

Keep it shady, everyone knows that insurance companies will go to any lengths and make policyholders jump through bizarre hoops to avoid paying out a full benefit.

Most policy holders have a "no more than 2 roomers/boarders" Clause in their policy.

I heard even if the policy has been cancelled, the policy holder could open a case for the damages that has been caused in the past.

It is a better coverage for the policy holder than "Actual Cash Value" (ACV).

Younger policy holders also pay less for the term portion due to low death risk, so it has the appearance that starting young is better.When you get a whole life policy, you are basically paying for term and investment.

Justin, every insurance policy has language within it stating if the policy holder has misrepresented the risk the insurance carrier has the right to deny claims.  

There are probably exclusions for intentional damage by the policyholder, but I’d imagine that’s rather rare. 

Borrowing against life insurance policies can delay stable returns that could act as a nice retirement account for the policy holder.

Contact property insurers in your area and offer to rent to their displaced policy holders.