J.P. Gonzalez-Sirgo
Founder of J.P. Gonzalez-Sirgo, P.A.

Have you ever wondered what would stop a complete stranger from purchasing a life insurance on your life and causing your death?  Florida courts and state lawmakers anticipated this potential problem and created an insurable interest requirement for life insurance policies.

Insurable interest exists when the purchaser of the policy will receive a greater benefit from the insured being alive, whether emotionally or financially.  Without insurable interest, a life insurance policy is considered void from the beginning.  Policies without insurable interest are also considered against public policy, as they increase the risk of murder for profit.  Even though insurable interest is mandatory at the time of application, it does not have to exist at the time of the insured’s death.

Courts and state laws have created certain criteria that must be met when determining insurable interest.  If you purchase your own life insurance policy, insurable interest automatically exists.  Insurable interest can also be created when the purchaser has a strong relationship with the insured.  For example, the relationship can be based on blood, marriage or money.  Spouses are considered to have insurable interest and generally so are parents, children, grandparents, grandchildren and siblings.  Depending on the state, some engaged couples are also considered to have insurable interest.

Insurable interest can also be established through monetary interests.  An example would be a purchaser who insures his or her business partner.  The partnership could stand to lose money if the insured passed away.  Creditors are also able to have insurable interest.  A creditor can purchase a life insurance policy on a debtor, with the debtor’s permission, up to the amount owed on the debt.  Examples include mortgage and credit insurance.

The article, Insurable Interest and Life Insurance Policies, has more information on this topic.

You can reach Miami Life Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email J.P. directly at [email protected].

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