We know there are complicated language words, but “insurable interest” in life insurance refers to the financial interest or economic relationship that one person has in the life or well-being of another person. In simpler words, it refers to the legitimate, financial motive that justifies the purchase of life insurance on someone else's life. This interest may be evident in the case of close family members, such as spouses, parents and children, where loss of income or funeral-related expense may cause significant financial difficulties. In addition, in some cases, an insurable interest may be available even if there is no direct family relationship, such as in the case of business partners or creditors who are financially dependent on the insured person. Learn more about the uses to which you can apply your Olé life insurance policy.