When is it essential for insurable interest to be present in case of life insurance?

A. At the time of taking out insurance

B. At the time of claim

C. Insurable interest is not required in case of life insurance

D. Either at time of policy purchase or at the time of claim

Answer: Option A

Solution(By Examveda Team)

Insurable interest is essentially a monetary interest which one should have on the continuing existence of the object of insurance. So, it is important for it to be there at the time of taking out insurance.