In the context of a life insurance application, when must insurable interest exist?

Question: In the context of a life insurance application, when must insurable interest exist?

Answer options:

• Only at the time of the insured's death.
• Continuously throughout the policy's life. ✅ At the time the policy is issued.
• Both at the time of application and at the time of death.

Correct answer: At the time the policy is issued.

Explanation: For a life insurance contract to be valid, insurable interest must exist at the time the policy is initiated. It does not need to exist at the time of the claim.