Chapter 8 exam
Which of the following is not a reason for a business to buy key person life insurance
An increased pension liability if the key employee dies
Which of these is not considered to be a cost connected with an individual's death
Business expenses
Which of the following disability buy sell agreement is best suited for businesses with a limited number of partners
Cross purchase agreement
When using the needs approach for life insurance planning, a lump sum maybe created to provide for all the following except: Final expenses, charitable donation, education, employee benefits
Employee benefits
What is considered a valid reason for small corporations to ensure the lives of its major stockholders
Find a buy-sell agreement
With life insurance, the needs approaches used primarily in determining
How much life insurance a client should apply for
When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?
Identifies the needs of an individual and the individual's dependents
Which of these is not relevant when determining the amount personal life insurance needed? Existing life insurance coverage, local unemployment rates, household income, household debt
Local unemployment rate
Which of the following is not considered to be an expense for surviving family members of a deceased wage earner
Unemployment tax expenses
According to the needs approach, an emergency reserve fund's primary purpose is to
cover the cost of unexpected expenses