What does insurable interest mean on a life insurance policy?
If you want to buy a life insurance policy on someone else’s life, you must have an interest in that person remaining alive, or expect emotional or financial loss from that person’s death. This is called an insurable interest. When you buy insurance on your own life, you are assumed to have an insurable interest. If you are buying a policy on someone else’s life, an insurable interest can typically be established if you have a sufficiently strong relationship with that person based on blood, marriage, or monetary interest.
