Question

What is the predominant reason to purchase life insurance on the life of a key person?

a.

To provide financial support to the key person's family

b.

To provide financial support to the policy beneficiary

c.

To indemnify the company against the loss of the key person whose skills and contribution is critical to the company

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (c).To indemnify the company against the loss of the key person whose skills and contribution is critical to the company Explanation:A predominant reason to purchase life insurance on the life of a key person is to indemnify the company against the loss of the key person whose skills and contribution is critical to the company.

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Q. What is the predominant reason to purchase life insurance on the life of a key person?
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