Uses Of Insurance Flashcards
All of the following are considered appropriate uses of life insurance for
business purposes EXCEPT
Protecting the business by covering entry-level employees with life insurance
Which approach predicts a person’s earning potential and determines
how much of that amount would be devoted to dependents?
Human life value approach
Which of these factors is NOT taken into account when determining an
applicant’s life insurance needs?
Automobile
Buy-sell agreements are typically funded by which two insurance
products?
Life insurance & disability insurance
Key person insurance is intended to
Cover business losses due to the death of a key employee
Which of these is a method of determining the level of funds required for
ongoing support in the event of the breadwinner’s death?
Human life value
The Human Life Value concept is based on
Income
All of the following are examples of a Business Continuation Plan EXCEPT
Deferred compensation
Bob and Tom are partners in a business. If one of them were to die, which
Of the following would guarantee a market for each of their share of the
business?
Buy-Sell agreement
Which of the following pieces of information is NOT gathered during the
personal financial planning process?
And individuals civil organization membership
When calculating the amount of life insurance needed for an income
earner, what has to be determined when using the Needs Approach?
The families financial objective if the income earner were to die or become disabled
All of these are common personal uses of life insurance EXCEPT
Find a Buy-sell agreement
Craig purchased a life insurance policy for enabling his heirs to pay estate
taxes. What is this called?
Estate conservation
Life insurance creates an immediate estate. This phrase means
When the insured dies, a death benefit is paid