#10 Uses of Life Insurance

Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement is funded with individual life insurance. How many total life policies are needed for this agreement?

6

C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true?

ABC is the policyowner, C is the insured, and ABC is the beneficiary

what is considered a valid reason for small businesses to insure the lives of its major shareholders?

Fund a buy-sell agreement

which statement regarding third-party ownership of a life insurance policy is true?

It is used extensively in estate-planning as well as business circumstances

in life insurance, the needs approach is used mostly to establish:

how much life insurance a client should apply for