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