An insurance policy is often regarded as an important instrument "to compensate the financial distress or loss brought about by an unexpected loss event". However, an insurance policy may not be effective unless certain legal requirements (e.g. presence of insurable interest) and documents (e.g. Will, Insurance Nomination, Statutory Trust, etc.) are executed to ensure that the proceeds can be used to alleviate the specific financial distress that the insurance policy was initially written to address. Examine and illustrate the role and importance of these "legal requirements and documents", citing relevant examples of their applications.