Question 4008 of 287 · Texas Life, Accident and Health Agent Exam
Key person life insurance is purchased by a business to
Exactly one answer is correct.
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Correct answer to question 4008
- B: protect against financial loss caused by the death of an owner or employee whose services are important
Explanation
The business is owner and beneficiary and pays the premium. Premiums are generally not deductible, and proceeds are generally income tax free.
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