insurable interest after divorce
my question (1)is: in Canada does insurable interest need to be present throughout the life insurance policy or just present at the time the policy was acquired? It is a co owned policy I am speaking about after a divorce, me, remaining the beneficiary, four school age kids, she is not helping to support them.
(2) with a Co owned (joint) life insurance policy is it seen as getting insurance for you self? Each of you? and in fact insuring your own life, and in turn you have unlimited insurable interest in your own life can name any beneficiary you like? I hope this is some what clear.
The critical time for insurable interest is at time of application.
That said, even if divorced, there is still an insurable interest because of the kids.
2) There is never unlimited insurable interest. It has to be demonstrated at time of application that there is a need for coverage. Sometimes the need stops at $100,000, other times it stops at $50,000,000. It depends on the situation at time of application.
The policy owner can always change the beneficiary, unless it is an irrevocable beneficiary designation.
Hope that helps clarify?
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