Chapter Exam - Uses of Life

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 agreements is best suited for businesses with a limited number of partners?

cross-purchase agreement

When using the needs to approach for life insurance planning, a lump sum may be created to provide for all of the following EXCEPT

employee benefits

With life insurance, the needs approach is 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 factors does NOT influence on individual's need for life insurance?

self-maintenance expenses

XYZ Corp gives money to an employee to purchase a life insurance policy and allows the employee to select the beneficiary. What kind of plan is this?

split-dollar

The premiums paid by an employer for his employee's group life insurance are usually considered to be

tax-deductible to the employer

Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner?

unemployment tax expenses