Insurable Interest

Insurance companies must evaluate each request in order to ensure that the insurance in question and a related benefit recipients insurable interest in the person will suffer if the insured event occurs.

Before accepting a plea of life insurance, insurance companies examine the relationship between the applicant, the designated heir and prospective insured to ensure that through these relationships arise insurable interest of the prospective insured.

Each person has insurable interest in his own life performance. Longevity is considered more profitable than dead. thus, insurable interest is presumed to exist if the applicant and the prospective insured are the same person.

Applicants who once prospective insured also has the right to appoint any person or party other desired as beneficiary. however, the insurance company may refuse to issue policies to applicants as well as the insured, if the beneficiary designation of doubtful relevance

Family relationship between the applicant and the designated beneficiary and the prospective insured generally cause insurable interest. Intimate relationships and the linkages between them causing fiansial insurable interest. Generally, husbands, wives, parents, children, grandparents, beak, brothers and sisters have an interest in insuring the life regarding prospective insured.