Ch.11
Which of the following pieces of information is NOT gathered during the personal financial planning process?
An individual's civic organization memberships
Buy-sell agreements are typically funded by which two insurance products?
Life insurance and disability insurance
Bob and Tom are partners in a business. If one of them were to die, which of the following would guarantee a market for each of their share of the business?
Buy-sell agreement (also known as business continuation agreements) are used to assure the ownership of a buisiness is properly tranderred upon the death or disability of an owner or partner
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
"Life insurance creates an immediate estate". This phrase means:
When the insured dies, a death benefit is paid
Key person insurance is intended to
cover business losses due to the death of a key employee
Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinners death?
Human life value
All of the following are examples of a business continuation plan EXCEPT
deferred compensation
The human life value concept is based on
Income
All of these are common personal uses of life insurance EXCEPT
Fund a buy-sell agreement