Which of these is not a reason for a business to buy key person life insurance

Which is not a reason for a business to buy key person life insurance?

Which of these is NOT a reason for a business to buy key person life insurance ? The correct answer is “A pension deficiency if the key employee dies”.

Which of the following is not considered to be an expense for surviving family members?

Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner? Unemployment tax liabilities are not expenses a surviving family will normally have.

Which type of plan allows an employer to give money?

A profit-sharing plan is a retirement plan that gives employees a share in the profits of a company. Under this type of plan , also known as a deferred profit-sharing plan (DPSP), an employee receives a percentage of a company’s profits based on its quarterly or annual earnings.

When an individual is planning to protect his family with life insurance One method of doing so is called?

When an individual is planning to protect his family with life insurance , one method of doing so is called needs analysis.

What statement is true regarding a minor beneficiary?

Which statement is true regarding a minor beneficiary ? In most cases, insurers require that a guardian be appointed in the Beneficiary clause of the policy or that a guardian be designated in the will.

When can a policyowner change a revocable?

With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary. C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age.

You might be interested:  What do international business majors do

Which is the best reason to purchase life insurance rather than annuities?

The annuity offers tax-deferred savings and retirement income. Simply put— life insurance protects your loved ones if you die prematurely while the annuity protects your income if you live longer than expected. Both plans do provide death benefits, but each is a very different option for different purposes.

Which of the following is the most common reason for buying life insurance?

The only reason a person would buy life insurance is to eliminate or substantially reduce the financial consequences of that person’s death by providing income to his or her dependents.

How much is a $10000 life insurance policy?

All premium quotes are for a $10,000 whole life insurance policy , with fixed premiums, guaranteed death benefit, and guaranteed cash value growth. $10,000 Whole Life Insurance Rates ages 20-45.

Age Male Female
30 $17.38 $16.18
35 $19.52 $17.97
40 $21.96 $19.98
45 $25.24 $22.59

Which is better 401a or 401k?

The 401k normally offers an employee the chance to choose from a wide range of investment options, the 401a on the other gives more power to the employer as regards the available investment options they can offer their employees.

Is 401a a pension?

A 401(a ) plan is an employer-sponsored money-purchase retirement plan that allows dollar or percentage-based contributions from the employer, the employee, or both. The employee can withdraw funds from a 401(a ) plan through a rollover to a different qualified retirement plan, a lump-sum payment, or an annuity.

What benefit plans are subject to Erisa?

ERISA applies to two types of plans – “Employee Welfare Benefit Plans ” and “Employee Pension Benefit Plans .” Employee Pension Benefit Plans include: Profit-sharing retirement plans . Stock bonus plans . Money purchase plans . 401(k) plans . Employee stock ownership plans . Defined benefit retirement plans .

You might be interested:  What to do when business is slow

What is an example of rebating?

An example of rebating is when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale. Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.

Which policy pays a benefit if the insured goes blind?

Accidental Death and Dismemberment Insurance . Also known as AD&D, this type of insurance pays out if the insured dies, becomes blind or is dismembered (loses a limb) in a covered accident.

What type of life policy contains a monthly mortality?

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? Variable Universal Life is comprised of monthly mortality charges and self directed investment choices.