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In Business / College | 2025-07-04

Which of the following is a common business use for life insurance?
A. Key person policy.
B. Creating an immediate estate.
C. Helping to fund a person's retirement.
D. Creating emergency funds to avoid the need to liquidate assets

Asked by 1jacobk

Answer (2)

The chosen option is A: Key person policy, which is a common business use for life insurance. A key person policy insures vital employees whose loss could significantly impact the company. It provides financial stability during a transition period after their passing, allowing the business to cope with operational challenges.
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Answered by Anonymous | 2025-07-04

A common business use for life insurance is a key person policy, which insures employees crucial to the company’s success. This type of insurance provides financial stability during a transition period following the loss of a key employee. Other listed options are more related to personal financial planning rather than direct business applications. ;

Answered by GinnyAnswer | 2025-07-04

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