CHAPTER 10 USES OF LIFE INSURANCE
QUESTIONS AND ANSWERS GUARANTEE
PASS.
Which of these is NOT a reason for a business to buy key person life
insurance? - CorreCt Answers -A pension deficiency if the key employee
dies
What is considered a valid reason for small businesses to insure the lives of
its major shareholders? - CorreCt Answers -Fund a buy-sell agreement
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? - CorreCt
Answers -ABC is the policyowner, C is the insured, and ABC is the
beneficiary
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? - CorreCt Answers -Establishes the needs of the individual
and his dependents
The premiums paid by an employer for his employee's group life insurance
are usually considered to be: - CorreCt Answers -tax-deductible to the
employer
Which of these is NOT relevant when determining the amount of personal
life insurance needed? - CorreCt Answers -Local unemployment rate
QUESTIONS AND ANSWERS GUARANTEE
PASS.
Which of these is NOT a reason for a business to buy key person life
insurance? - CorreCt Answers -A pension deficiency if the key employee
dies
What is considered a valid reason for small businesses to insure the lives of
its major shareholders? - CorreCt Answers -Fund a buy-sell agreement
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? - CorreCt
Answers -ABC is the policyowner, C is the insured, and ABC is the
beneficiary
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? - CorreCt Answers -Establishes the needs of the individual
and his dependents
The premiums paid by an employer for his employee's group life insurance
are usually considered to be: - CorreCt Answers -tax-deductible to the
employer
Which of these is NOT relevant when determining the amount of personal
life insurance needed? - CorreCt Answers -Local unemployment rate
