Insurable Interest is required in order for someone to buy a life insurance policy on someone else.

It means you have a financial interest in that person and if the person should die, you would lose out financially.

For example, either you rely on the person for some means of financial support, or if the person should die, you would suffer a financial cost; such as, having to pay for the person's final expenses.

Insurable Interest usually exists between spouses, parents and their children, and b...

For someone to take out a life insurance policy on you, they must have an insurable interest in you.

Insurable interest means the other person who wants to insure you for life insurance stands to lose financially if you were to die. The other person relies on you for some means of financial support.

For example, if you passed away, it would cause them financial harm.

Also, you must give the other person them permission to take out the life insurance policy on you by signing the...