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28 August, 07:37

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner What of insurance policy may be used to fund this agreement?

1. Term insurance only

2. Permanent insurance only

3. Universal life insurance only

4. Any form of life insurance

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Answers (1)
  1. 28 August, 10:59
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    Answer: (4) Any form of life insurance

    Explanation:

    According to the given question, any type of the life insurance policy are used for purpose of funding the interest financially of deceased partner.

    In this type of life insurance policy we made an agreement between the holder of life insurance policy and the insurer based on the critical or terminal illness of the person.

    It is basically used into the form of two types that is whole life or for the short term contract basis. Therefore, Option (4) is correct.
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