Life license CH 11
When calculating the amount of life insurance need for an income earner, what has to be determined when using the Needs Approach?
The family's financial objectives if the income earner were to die or become disabled
Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents
Human life value approach
Buy-sell agreements are typically funded by who two insurance products?
Life insurance and disability insurance
The Human Life Value concept is based on
income
"Life insurance creates an immediate estate". This phrase means:
when the insure dies, a death benefit is paid.
Which of following pieces of information is NOT gathered during the personal financial planning process?
An individual's assets
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
Key person insurance is intended to
Cover business losses due to the death of a key employee
All of the following are examples of a Business Continuation Plan except
Deferred compensation
All of these are common personal uses of life insurance EXCEPT
Fund a Buy-Sell agreenment