LLQP (Life Licence Qualification Program) Practice Exam · Question
What is the primary purpose of a corporation purchasing a 'Key Person' life insurance policy?
Key Person insurance is used by a business to compensate for the financial loss caused by the death of a vital employee, providing funds to find and train a rep
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Question: What is the primary purpose of a corporation purchasing a 'Key Person' life insurance policy?
Answer options: ✅ To cover the loss of income and expenses associated with replacing a vital employee.
- To provide a retirement fund for the employee.
- To pay for the employee's funeral expenses.
- To provide a tax-free gift to the employee's family.
Correct answer: To cover the loss of income and expenses associated with replacing a vital employee.
Explanation: Key Person insurance is used by a business to compensate for the financial loss caused by the death of a vital employee, providing funds to find and train a replacement.
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- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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