Since an insurable interest must exist at the inception of a life insurance contract to make it enforceable, the amount of payment is usually limited by the extent of such insurable interest.

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In life insurance, the insurable interest must exist at the inception of the contract, but the amount of payment is not limited by the extent of the insurable interest. The policyholder can choose the coverage amount, which is typically based on their financial needs and goals.

Since an Insurable Interest Must Exist at the Inception of a Life