Life Insurance Basics
Who owns, pays for, and benefits from key person life insurance?
Answer and explanation
Answer: B. Key person coverage protects the business against the economic loss caused by the death of someone important to it, so the business applies, owns, pays, and receives the proceeds. Family protection is personal coverage, and a trustee arrangement describes a buy-sell structure.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, key person
More life insurance basics questions
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