IFSE Institute Life License Qualification Program (LLQP) LLQP Question # 81 Topic 9 Discussion

IFSE Institute Life License Qualification Program (LLQP) LLQP Question # 81 Topic 9 Discussion

LLQP Exam Topic 9 Question 81 Discussion:
Question #: 81
Topic #: 9

Konrad is the owner of CrossBoy, a manufacturing company employing over 50 employees. Konrad recently took out a $500,000 loan to expand his business. Terrence works as a sales manager and is responsible for roughly 40% of the company’s revenue. Konrad recognizes the importance of Terrence's contributions to the success of the company. Therefore, in addition to a sizeable basesalary, CrossBoy also pays Terrence regular performance-based bonuses. Konrad understands that if Terrence dies prematurely, CrossBoy would suffer financially. What should he do to protect his company?


A.

Offer Terrence group life insurance plan.


B.

Purchase business-owned buy-agreement with Terrence.


C.

Purchase key person life insurance on Terrence.


D.

Purchase criss-cross insurance with Terrence.


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