Life Insurance for Businesses

Question 1

Key-Person Policy

Answer 1

Business has a policy on a valuable employee

Question 2

Key-person policies require…

Answer 2

Employee consent

Question 3

Corporate Split-Dollar Policy

Answer 3

Premium is split between employer and employee

Question 4

Corporate Split Dollar Policy: If employee dies…

Answer 4

Employer gets its portion of premium returned and remainder goes to employee’s beneficiary

Question 5

Corporate Split Dollar Policy: If employee leave/retires…

Answer 5

Employee can reimburse the employer in exchange for full policy or receive the policy as a gift

Question 6

Corporate Split Dollar Policy lets employees get insurance at…

Answer 6

Low cost

Question 7

Corporate Split Dollar Policy can create what for the employee?

Answer 7

Tax issues

Question 8

Buy and Sell Plans

Answer 8

Business partners purchase life insurance on one another

Question 9

For buy/sell plans, death benefit is used to…

Answer 9

Buy out deceased partner’s heirs