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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
In life insurance, the insured may insure someone else’s life, and designate himself as the beneficiary provided that he has insurable interest over the life of the person whom he insures.
In the intricate tapestry of life, where every thread weaves its own story, there lies a promise wrapped in the guise of a simple document—a life insurance policy.
What is an insurance contract?
It is an agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event. (Sec. 2(a), Insurance Code (IC))
One of the elements of an insurance contract is insurable interest. An insurable interest is that interest which a person is deemed to have in the subject matter insured, where he has a relation or connection with or concern in it, such that the person will derive pecuniary benefit or advantage from the preservation of the subject matter insured and will suffer pecuniary loss or damage from its destruction, termination, or injury by the happening of the event insured against. (Divina, 2021)
The existence of insurable interest is a matter of public policy and is not susceptible to the principle of estoppel. The existence of an insurable interest gives a person the legal right to insure the subject matter of the policy of insurance. (Violeta. Lalican v. Insular Life Assurance Co. Ltd., G.R. No. 183526, 25 Aug. 2009)
Can a person take insurance on the life of another person and designate himself as the beneficiary?
Yes, in life insurance, the insured may insure someone else’s life, and designate himself as the beneficiary provided that he has insurable interest over the life of the person whom he insures. (Divina, 2021)
Indeed, in the symphony of our lives, where every note plays a part in the grand melody, life insurance is the silent yet steadfast conductor, ensuring that the final chords resonate with harmony and care.
Related Article/s:
Life Insurance and other Non-Life Insurance Policies
Rescission of Insurance Contracts and Refund of Premiums
Insurance Contract: The One with Perfect Good Faith
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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