What is the maximum sum insured for a life insurance policy on an adult son for Mia?

What is the maximum sum insured for a life insurance policy on an adult son for Mia?

• A. An unlimited amount for the husband, not allowed for the son
• B. A fixed amount for both
• C. Unlimited amount for both
• D. Only a small percentage of the husband's insurance

Answer: (A)

In the context of life insurance, the ability to insure an individual depends largely on the insurable interest that the policyholder has in that individual. In many jurisdictions, a spouse typically has an unlimited right to insure their partner due to the recognized insurable interest that arises from their relationship and shared financial responsibilities. However, the situation is different when it comes to insuring a child, such as an adult son. Generally, in most life insurance markets and regulations, a parent can only insure a child for a limited amount, which is often determined by specific guidelines or fixed amounts. This limitation is because the insurable interest that exists for a parent over an adult child is typically less than that for a spouse. Therefore, the assertion that there is an unlimited amount allowed for the husband (the spouse) but not for the son aligns with the general principles underlying insurable interest in life insurance policies. This delineation underscores the rule that while a spouse can be insured to any amount a husband wishes due to the nature of their relationship, the adult son cannot receive the same treatment because the financial implications are less substantial and more regulated. Thus, the understanding of insurable interest helps clarify why the maximum sum insured differs based on the relationship between the insured and the

In the context of life insurance, the ability to insure an individual depends largely on the insurable interest that the policyholder has in that individual. In many jurisdictions, a spouse typically has an unlimited right to insure their partner due to the recognized insurable interest that arises from their relationship and shared financial responsibilities.

However, the situation is different when it comes to insuring a child, such as an adult son. Generally, in most life insurance markets and regulations, a parent can only insure a child for a limited amount, which is often determined by specific guidelines or fixed amounts. This limitation is because the insurable interest that exists for a parent over an adult child is typically less than that for a spouse.

Therefore, the assertion that there is an unlimited amount allowed for the husband (the spouse) but not for the son aligns with the general principles underlying insurable interest in life insurance policies. This delineation underscores the rule that while a spouse can be insured to any amount a husband wishes due to the nature of their relationship, the adult son cannot receive the same treatment because the financial implications are less substantial and more regulated.

Thus, the understanding of insurable interest helps clarify why the maximum sum insured differs based on the relationship between the insured and the