In life insurance, what is the relationship that does NOT automatically give rise to an insurable interest?

In life insurance, the concept of insurable interest is crucial, as it determines who has a legitimate interest in the life of the insured and thus can take out an insurance policy on that individual's life.

The relationship between parents and children does not automatically imply an insurable interest in the same way as other relationships might, such as between spouses or business partners. While parents typically have an emotional and financial interest in their children, the absence of a legal or financial obligation (such as debt or shared interests) means this relationship does not inherently create an insurable interest in life insurance.

In contrast, spouses usually have both emotional and financial ties, which create an insurable interest. Business partners have a vested interest in each other's lives due to the financial implications of a partner's death for the business. Employers also have an insurable interest in their employees since the loss of an employee can lead to financial loss or disruption in business operations.

Thus, the relationship that does not automatically give rise to an insurable interest is that of parents and children, as it lacks the necessary legal or financial underpinning in the context of life insurance.