Which of the following statements regarding a life insurance policy for key employees is NOT true? The essential worker’s signature is required on the application. Its goal is to protect the company from any monetary setbacks in the event that a key employee passes away.
Who is the owner of a key employee life policy?
The company is the applicant, owner, and beneficiary of the life insurance under a key employee life policy, whereas the employee’s only role is that of an insured under the policy.What is meant to be referred to by the phrase ″sharing the outcome of financial loss generated by an individual’s death across several others so that the expense for each individual is small″?A) The idea that death is inevitable.
Who takes out a key employee policy?
Company X has decided to protect its vice president by purchasing a Key Employee coverage. After working with Company X for ten years, this individual decides to go on and start working for Company Y. If this person were to pass away while the insurance is still active and has not been altered in any way, where would the money from the individual’s death be sent?
Who is the applicant for life insurance on the Kalamazoo company?
The Kalamazoo Stove and Screen Door Company has Harold, their important vice president, insured against the possibility of his passing away.The Kalamazoo S and D Company is the policy’s premium payer as well as the beneficiary, and it retains full control over the policy’s rights.Which one of the following statements is accurate?A) Harold and his firm are the applicants, and the proposed insured is Harold.
What kind of policy does not typically require proof of insurability?
9 Which types of policies, in general, do NOT demand for proof of insurability to be submitted? 1. Individual insurance 2. Insurance for groups 3. Variable universal life 4. Permanent or term insurance 2. Insurance for groups 10 According to which rule does the statistical modeling of potential losses, which is the basis for determining insurance premiums, take place?
What is key employee life?
Key person insurance is a type of life insurance policy that a company buys for one or more of its workers who are considered to be particularly vital to the company.A rider for disability coverage can also be included in a policy to provide assistance in the event that a key employee becomes disabled.A small firm might be protected from financial loss in the event that a key employee passes away or becomes handicapped by purchasing key person insurance.
Which statement is true regarding a variable whole life policy?
In reference to a variable universal life policy, which of the following statements is accurate? When it comes to variable universal life insurance, the policyholder is in charge of deciding how the cash values are invested as well as the frequency and total amount of premium payments.
What is considered a valid reason for a small business to ensure the lives of its major shareholders?
What are some of the reasons that are regarded to be acceptable for smaller companies to cover the lives of their big shareholders? In the event that a big stakeholder in a company were to pass away, a buy-sell agreement would need to be funded. This is why life insurance is obtained.
Which statement is correct regarding the premium payment schedule for whole life policies quizlet?
Which of the following statements concerning the premium payment schedule for whole life insurance plans is accurate? The insured must continue to pay premiums throughout their lives, and coverage remains in effect until the policyholder dies.
Who is a key person life insurance policy?
The term ″key person insurance″ refers to a policy of life insurance that a company obtains on the life of a business owner, a senior executive, or another individual who is seen as being essential to the operation of the firm. The beneficiary of the insurance is the corporation, and the firm is responsible for paying the premiums.
What is the main purpose of key person insurance?
According to the Insurance Information Institute, key person insurance is a type of life insurance policy that pays a death benefit to a company in the event that the company’s owner or another prominent employee passes away (III).
Which of the following is not true regarding a straight life policy?
Which of the following statements regarding a Straight Life policy is NOT true?As a direct result of its ever-increasing monetary worth, its premium gradually falls over the course of its duration.Which of the available options for universal life insurance has a fixed death benefit but a cash value that grows over time?In the context of a universal life insurance, the term ″target premium″ refers to which of the following?
Which of the following is not true about a variable whole life policy?
All of the following policy characteristics are not guaranteed in a variable whole life policy, EXCEPT: Variable whole life plans offer a guaranteed minimum death benefit. The monetary value is connected to the separate account, which is not guaranteed.
Which of these is not an element of life insurance?
The life insurance industry does not include any form of subsidy in any way. A subsidy or government incentive is a sort of financial help or support provided to an economic sector typically with the objective of improving economic and social policies. Subsidies and government incentives are also known as tax breaks.
Which of the following is not considered to be an expense for surviving family members of the deceased wage earner?
Which of the following does NOT qualify as a cost that must be covered by the remaining family members of a wage employee who has passed away? Normally, a surviving family will not be responsible for any expenditures related to unemployment tax liabilities.
Which statement is true regarding a minor beneficiary?
Which of the following statements about a minor beneficiary is true? The majority of the time, insurers demand that a guardian be chosen in a will or that they be nominated in the Beneficiary clause of the policy. If none of these options is available, the insurer may deny coverage.
What is key person insurance UK?
When an employee suffers from a terminal illness, a critical illness, or passes away, businesses can be protected against a loss in earnings by purchasing key person insurance. You can use the money to pay for someone to take your position. Having key person insurance might be beneficial to the continuation of a firm.
At what point does a whole life insurance policy endows when the quizlet?
When the policyholder reaches the age of 100, a whole life insurance ″endows,″ which implies that the total amount of premiums paid will finally be equivalent to the face value of the policy.
Which of the following features of a group term life policy enables an individual to leave the group?
Correct. An person has the opportunity to exit the group term plan and maintain their own insurance under the conversion privilege without having to provide evidence that they are insurable.
Which of the following life insurance policies combines term insurance with an investment element?
A universal life insurance policy is a form of permanent insurance that combines term insurance with an investment that is similar to a money market and pays a rate of return that is comparable to the market rate.