Who can individuals consider as having an insurable interest in each other’s lives in the absence of economic interest?

Marriage partners can be considered to have an insurable interest in each other’s lives, even in the absence of direct economic interest. Insurable interest in life insurance is primarily based on the idea that the policyholder would suffer a financial loss or hardship from the death of the insured.

In the case of marriage partners, the emotional and familial bonds create a natural insurable interest. The surviving spouse may face significant psychological and financial repercussions from the death of their partner, such as the potential loss of shared income, loss of companionship, and other related factors. This bond is recognized legally as a sufficient basis for establishing an insurable interest in life insurance policies.

While business partners also share an insurable interest due to the financial implications of one partner's death affecting the business, college friends and neighbors typically lack that same depth of relationship or financial dependency to establish a clear insurable interest. Their connections do not usually provide the same degree of risk or economic consequence associated with the loss of life compared to the bond shared between marriage partners.