Chapter 7 - Business Uses of Life Insurance Flashcards
1
Q
Key Employee Policy
A
Life insurance on an individual with special knowledge or skill that is financially crucial to the business
2
Q
Buy-Sell Agreement
A
An advance agreement within a business to buy out an heir funded by a life insurance policy
Stock redemption (entity) plan- the corporation buys the shares of the deceased owner
Cross purchase plan - the owners each own like insurance on each of the other owners
