insurable interest

Insurable interest

An insurance term referring to the relationship between a policy's insured person or property and the potential beneficiary. The beneficiary must have an insurable interest in the insured person or property to receive payment of the policy if the insured died while the policy was in force.

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Insurable Interest

The ability to derive profit or another benefit from an object, business or something else. For example, dentists have an insurable interest in their dental equipment because without it they would be unable to make a living. As the name implies, one may purchase an insurance policy to provide coverage for the loss of an insurable interest.

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insurable interest

A right or interest in property or in the life of another that would cause the person to suffer a monetary loss if injury came to the property or to the other person. One must have an insurable interest in order to buy insurance, because the insurance is intended to compensate one for a loss.