If a person is single, who has insurable interest within a life insurance policy?

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Asked November 10, 2014

1 Answer


Insurable interest means that the person stands to suffer a loss, either financially or emotionally, if the single person passes away. Determining insurable interest is not much different than determining insurable interest for a person married with children. That could mean that almost anyone you know could have an insurable interest, and even organizations or employers.

Most single people still have relatives and relationships. Parents, cousins, nephews and uncles all have a potential insurable interest, emotionally if not financially. If you are in a relationship with someone, they have an emotional interest, and if you live together it may be both financial and emotionally. As long as the person or people will suffer because of you loss, they have an insurable interest that should be protected, either by being part of larger policy or through an individual policy that the person owns.

If you are vital employee, such as being the only person in the company who knows how the machinery really works, your employer may have an insurable interest. If they would suffer a financial loss because of your death, then they have an insurable interest.

The owner of the policy can also name non-human entities as beneficiaries on a policy. For example, a pet has a definite dependence on the owner, or an old homestead may have a meaning for the insured that lives on after he is gone. Even charities and other organizations, including political groups, can be named as beneficiaries, giving them an inferred interest. These groups cannot purchase a policy on a single person because that person is not an insurable interest, but they can receive proceeds from a policy because of the interest of the insured.

Answered November 10, 2014 by Anonymous

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