An insurable interest exists if a person suffers a financial loss resulting from an event or occurrence.

The insurance should compensate for a loss but not enrich the beneficiary, otherwise this would increase the moral hazard.

If a person dies or becomes disabled, a loss can occur for various parties (e.g. family, company, bank). Therefore, CLUE differentiates between the following categories:

In order to reflect the financial loss in each situation, these types of cover are calculated on a different basis and are generally considered independently of each other.

However, some of the underlying interests may be correlated:

• Family protection ⇔ Personal loan
  The beneficiary gets the sum insured from family protection cover to compensate for their loss and additionally they get a house debt-free without having to pay any more monthly loan payments. From a purely financial perspective, this could be seen as an enrichment.
• Keyman cover ⇔ Business loan
  A company gets keyman cover to compensate for their losses and pay for recruitment costs, additionally the loan gets paid back and they have no further monthly payments. From a purely financial perspective, this may be seen as enrichment.

Furthermore, some transitions can be smooth (e.g. in case of family-owned businesses). Deviations from the usual guidelines may make sense for specific cases.