Sentences with phrase «beneficiary has a financial interest»

An insurable interest means the beneficiary has a financial interest in the continued life of the insured and that the beneficiary would sustain a financial loss if the insured die prematurely.

Not exact matches

Insurable interest means that the beneficiary of the policy derives an ongoing benefit, typically financial, from the insured, and that a death of the insured would cause the person to suffer a financial or other form of loss.

If a viable insurable interest can be created (meaning there is a financial loss to you if you were to lose one of your parents), then an insurance company would take the risk and allow you to pay the premiums and be the beneficiary.

Shomari Hearn, a Certified Financial Planner and vice president with Palisades Hudson Financial Group in Fort Lauderdale, Fla., pointed out that you don't have to repay the loan, though you will have to pay interest each year, and any unpaid loan balance will reduce the death benefit your beneficiaries receive.

So we know a beneficiary must have an insurable interest in you; meaning they would suffer a financial loss if you died.

It might not be in your best interest to choose a beneficiary that has a lot of debt or has other financial issues, such as a tendency to blow their money instead of being frugal and wise with their money.

For life insurance purposes, a beneficiary has an insurable interest in the insured person when loss of that person would cause the beneficiary to suffer a financial loss.

Insurable interest means the beneficiary would suffer a measurable financial loss if you were to die.

In plain language, an insurable interest is how much financial dependence the beneficiary or the policy owner has toward the insured person.