Which of the following cannot be a beneficiary of a life insurance policy?

A life insurance policy allows the insured individual to designate beneficiaries who will receive the policy's benefits in the event of their death. The beneficiary must have an insurable interest in the policyholder, meaning they would suffer a financial loss or hardship upon the policyholder's passing.

In the case of someone who owes you money, they do not have an insurable interest in your life. The purpose of a beneficiary is to provide financial support to those who would experience a negative financial impact due to the insured's death. Since a debtor has no vested interest in the continued life of the creditor, they cannot be named as a beneficiary. This is also reflective of the ethical considerations around life insurance, aiming to ensure the benefits are directed toward individuals who have a meaningful connection or relationship with the policyholder.

Children from a former marriage, brothers and sisters, and even individuals to whom you owe money can all have an insurable interest depending on the circumstances surrounding the relationship and the financial implications of the policyholder's passing. Thus, while those groups may be valid beneficiaries under certain conditions, a debtor lacks the necessary insurable interest to justify receiving life insurance proceeds.