Insurable Interest and Life Insurance?

What is insurable interest and how does it work?

Basically, insurable interest means you have a financial interest in there person you wish to insure for life insurance.

Which means you stand to lose financially if the person were to die. For example, you either rely on that person for some form of financial support, or you would lose out financially if the person were to die.

Insurable interest is required to permit you to buy life insurance on another person. So you don't go around insuring people you don't know, who are about to die.

Insurable interest does exist between spouses, parents and their children, siblings, relatives, and business partners, among others.

Learn more about how insurable interest works.