Life Insurance needs analysis/suitability

Question 1

if a 40-year-old currently makes $20,000 a year, they will need $500,000 (25 years × $20,000) in life insurance.

Answer 1

Personal Insurance needs

Question 2

using a multiple of five, $1,000,000 would be the amount of insurance needed for a key person with a salary package totaling $200,000.

Answer 2

Business Personal needs

Question 3

a life insurance policy that a business takes out on its most valuable employee or employees

Answer 3

Key Person

Question 4

If a business owner dies, the business receives a death benefit of $1,000,000. The business purchases the deceased’s share from his or her estate using the death benefit payout.

Answer 4

Buy sell