Uses Of Life Insurance Quiz

Question 1

In a key employee life insurance policy, the third-party owner can be all of the following except:

Answer 1

Insured

Question 2

Two partners own equal shares in a business worth a total of $1 million. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell agreement, which of the following is true?

Answer 2

Each partner owns a $500,000 policy on their partners life

Question 3

Which of these factors does not influence an applicants need for life insurance?

Answer 3

Self maintenance expenses

Question 4

Which type of plan allows an employer to give money to an employee for buying a life insurance policy, and also permits the employee to select the beneficiary?

Answer 4

Split dollar plan

Question 5

Which of these is not relevant when determining the amount of personal life insurance needed?

Answer 5

Local unemployment rate