At what time must insurable interest exist for life and health insurance?

Insurable interest must exist at the time of the application for life and health insurance. This means that when an individual applies for a policy, they must have a legitimate interest in the continued life and well-being of the insured person. This principle ensures that insurance is used for its intended purposes, providing financial protection rather than facilitating gambling or speculative outcomes.

Having insurable interest at the application stage means the applicant has a reason to care about the health and life of the insured, which is a fundamental requirement of insurance contracts. This fosters a sense of responsibility and fairness in the insurance market and helps prevent moral hazards where someone might have an incentive to cause harm.

For clarity, insurable interest does not need to be proven at the claim submission stage, as by that time, the policy has already been established based on the interests declared in the application. It also does not need to be confirmed during the renewal of the policy, as the original application establishes the relationship. Consequently, the pivotal moment for demonstrating this insurable interest is indeed at the time of the application.