Insurable Interest
Insurable interest exists if you (as the policyowner) expect to suffer a financial loss or fail to make a financial gain if the life insured dies
- only required required when the policy is issued
- after issue, you can assign the policy to a party without insurable interest
Automatically Assumed
You are automatically assumed to have insurable interest in life or lives of
- yourself
- your spouse
- your children
- your grandchildren
- your employees
- your business partners
- your guarantor
Exceptions
Insurable interest is not required if the life insured agrees in writing
Consequences
Without insurable interest, you cannot
- receive policy benefits
- get your premium refunded
page revision: 7, last edited: 16 Sep 2007 03:29