Question: Key person insurance is intended to

Answer: cover business losses due to the death of a key employee

Question: Which of the following pieces of information is NOT gathered during the personal financial planning process?

Answer: An individual's civic organization memberships

Question: Buy-sell agreements are typically funded by which two insurance products?

Answer: Life insurance and disability insurance

Question: The human life value concept is based on

Answer: Income

Question: All of the following are considered appropriate uses of life insurance for business purposes EXCEPT

Answer: Protecting the business by covering entry level employees with life insurance

Question: All of these are common personal uses of life insurance EXCEPT

Answer: Fund a buy-sell agreement

Question: All of the following are examples of a business continuation plan EXCEPT

Answer: deferred compensation

Question: Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinners death?

Answer: Human life value

Question: "Life insurance creates an immediate estate". This phrase means:

Answer: When the insured dies, a death benefit is paid

Question: 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?

Answer: Buy-sell agreement (also known as business continuation agreements) are used to assure the ownership of a buisiness is properly tranderred upon the death or disability of an owner or partner