Insurable interest
When a life insurance policy is purchased, the applicant must verify that upon the death of the person that is being insuraed, they expect to suffer monetary loss. The insurable interest may does not necessarily have to exist at the time of the death of the insured, but must be sufficient to warrant compensation. Every individual has an unlimited insurable interest in his/her own life. But an insurable interest may also exist between family members, like husband and wife, parent and child, as well as between business partners, creditor and debtor and employer and employees.
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