Which of the following relationships is considered to have an insurable interest?

The relationship between spouses is considered to have an insurable interest due to the strong emotional and financial ties that typically exist within a marriage. Insurable interest is a principle that requires the policyholder to have a legitimate interest in the continued life, health, or well-being of the person being insured. When it comes to spouses, this interest is evident; the death or disability of one spouse can significantly impact the other’s financial stability and emotional well-being.

In marital relationships, spouses often share assets, income, and responsibilities, making it essential for each to be able to secure financial support in the event of loss. Therefore, an insurance policy designed to protect one spouse from financial hardship upon the death or permanent disability of the other is grounded in a clear insurable interest.

This principle is also applicable in situations involving business partners, where the loss of a partner can have financial repercussions for the remaining partners. However, in this case, the focus is specifically on the personal and emotional bonds between spouses, which create a compelling need for insurable interest in life insurance contexts.