Is the beneficiary required to have insurable interest in the insured?

In life insurance, the beneficiary is not required to have an insurable interest in the insured. Insurable interest is a principle that ensures that the person purchasing the insurance policy has a valid interest in the continued life of the insured, usually because they would suffer a financial loss if the insured were to pass away. However, once the policy is established, the beneficiary designation is not contingent on having insurable interest. This means that individuals can be named as beneficiaries regardless of whether they have any financial stake or relationship with the insured. This provision allows for flexibility in estate planning and can include family members, friends, or even charitable organizations, thus expanding the options for both policyholders and beneficiaries.