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Crank
3 years ago
12

All of the following are true of key person insurance EXCEPT

Advanced Placement (AP)
1 answer:
11Alexandr11 [23.1K]3 years ago
5 0

Answer: The plan is funded by permanent insurance only;

Explanation:

Key person insurance simokt refers to a form of life insurance policy whereby a death benefit is provided to a business when there's death if the owners or a key employee.

The key employee is the insured, the employer is is the owner, payor and beneficiary of the policy.

From the options given, we should note that key person insurance is not funded by permanent insurance only. Therefore, the correct option is B.

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