Life Insurance: Who Can Apply & Insurable Interest Explained

A niece cannot propose a life assurance policy on her life.

Life insurance policies can only be taken out by the person whose life is being insured, or by someone with an insurable interest in that person. An insurable interest is a legal or financial stake in the life of another person. For example, a spouse, parent, or child has an insurable interest in the life of another family member.

A niece does not have an insurable interest in the life of her aunt or uncle. Therefore, she cannot propose a life assurance policy on her life.