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When must insurable interest exist in a life insurance policy?

Understand the Problem

The question is asking about the specific timing and conditions under which insurable interest must be present for life insurance policies. This involves understanding legal and insurance principles.

Answer

At the time the policy is purchased

The final answer is insurable interest must exist at the time the policy is purchased.

Answer for screen readers

The final answer is insurable interest must exist at the time the policy is purchased.

More Information

In life insurance, insurable interest is the expectation of monetary loss if a specified event happens to another person, mainly their death. This is crucial for the validity of the contract when the policy is first purchased.

Tips

Ensure that there is a clear financial or emotional dependency that can be demonstrated to prove insurable interest.

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