Uses of life Insurance
Three lol partners form a cross purchase buy and sale agreement. Disagreements fun with individual life insurance. How many total life policies are needed for this agreement?
6
See is a key employee at ABC Inc. If a key employee life policy is purchased on her life, which of these statements would be true?
ABC is a policyowner, C is the insured, and ABC is the beneficiary
Two partners on equal share in a business worth a total of $1 million. If they both commit to the purchase of a life insurance policy that will fund a buy sell agreement which of the following is true?
Each partner owns a $500,000 policy on their partner's life
Which of these is not considered to be a cost connected with an individual's death?
Except Business expense!
In a life insurance, the needs approach is used mostly to establish?
How much life insurance a client should apply for
Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary.
Split dollar plan is an arrangement wearing employer and employee share in Mecosta purchasing a life insurance policy on the employee. The employee is also allowed to name the policy beneficiary
The premiums paid by the employer for his employees group. Life insurance are usually considered to be?
Tax-deductible to the employer
A key employee policy is taken out by company X on its vice president. 10 years later, this employee leaves company eggs and begins working for a company y. This individual where the guy in the policy is still in force in unchanged, wear with a death proceeds, be directed?
company x
Companies he has a cross purchase buy sell agreement in place among its three found in partners. If the agreement responded with individual life insurance, what were they require?
Each partner must own a policy on the other partner
Which of these is not a reason for purchasing life insurance on the life of a minor?
If both parents were to die, it would provide death benefits to the child. An insurance policy on a child would not pay any benefits if one or both of the parents died.
Which statement regarding third-party ownership of a life insurance policy is true?
It is used extensively and estate planning, as well as business circumstances
K is an insured under a life insurance policy owned by a third party. Which of these statements is true?
K has no ownership rights
Which statement regarding a key employee life policy is not true?
The beneficiary is named by the key employee
In a key employee life insurance policy, the third-party owner can be all the following except?
The insured since it is third party, not you
When an individual is planning to protect his family with life insurance one method of doing service called needs analysis. What exactly does needs analysis involves?
Establishes the needs of the individual and his dependence
What is considered a valid reason for small businesses to ensure the lives of its major shareholders?
Fund a buy sell agreement
an architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager?
Key Person Life Policy
Which of these is not relevant when determining the amount of personal life insurance needed?
Local unemployment rate is not relevant
Which of these is not a reason for a business to buy key person life insurance?
Pension, definition, see if the key employee dies is not relevant
Which of these factors does not influence how much time consumers spend searching for information?
Self maintenance expenses
