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.
Sources
- Insurable Interest in Life Insurance - Aflac - aflac.com
- 2.2.5 Insurable Interest - American Safety Council - course.uceusa.com
- What you need to know about insurable interest - Protective Life - protective.com
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