Insurable Interest
Insurance Glossary
The requirement that the person buying a policy would suffer a real financial loss if the insured person died or the insured property were damaged. In life insurance it has to exist when the policy is issued but not necessarily when the claim is paid, and it is what prevents anyone from insuring the life of a stranger. Family relationships, marriage, business partnerships and creditor relationships commonly satisfy it, and the specifics are set by state law.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.