Insurable interest
A recognised financial stake in the continued life of the person being insured.
You cannot insure a stranger. Insurable interest means you would suffer a genuine financial loss if the life assured died — which is why cover on yourself, a spouse or a business partner is straightforward and cover on an unconnected person is not.
It is assessed when the policy is taken out.
Related terms
Back to the glossary · The four categories · How applying works
Last reviewed: