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


Insurable interest is not required if the life insured agrees in writing


Without insurable interest, you cannot

  • receive policy benefits
  • get your premium refunded

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