Ch 8

Which of these is not a reason for a business to buy key person life insurance

A pension deficiency if the key employee dies

Which plan is a non-qualified employee benefit arrangement in which an employer pays a compensation bonus to a selected employee who uses the bonus payment to pay the premiums on a life insurance policy covering their life

Executive bonus plan

In life insurance needs approaches use the mostly to establish

How much life insurance a client should apply for

Which approach predicts a persons earning potential and determines how much of that amount would be devoted to dependents

Human life value approach

All of the following are valid reasons for mine life insurance on a child except

If both parents were to die would provide death benefits to the child

All of the following are considered appropriate uses of life insurance for business purposes except

Protecting the business by covering entry level employees with life insurance

Which of these is not considered to be a cost connected with an individual's death

Business expenses

A split dollar plan will most likely be had by

Division manager

A life insurance policy is a piece of property when when insured insured dies the policy creates a

Immediate estate

Which of these is not relevant when determining the amount of personal life insurance needed

Local unemployment rate