I emailied
To Jack Rotzien:
Please clarify about Key Person Insurance providing “Living Benefits” in Chapter 14:
“The following question is a review of the content on the previous page. Answer it and then click below to check your response.”
Key-person term policies develop advantageous "Living benefits."
False
..>>True
Your answer : True
The correct answer: False The Question: Key-person term policies develop advantageous "Living benefits." …….. I believe True is the correct answer –yes?...............Am I missing some much-too subtle distinction?.......
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From the lesson:
The following are the primary purposes that key- person insurance serves:….
A reserve fund or "living benefit." Living benefits accrue from the cash value liquidity, which appears each year as an asset on the company's balance sheet.
Any feedback from other students about this particular question?
-Thanks,
John Shave
John,
I'm not taking this class but rather I'm doing the 220 course, but I'm an independent life agent here in Tampa. The answer to this question is False. The reason is because the question clearly states that the Key Person policy is a "Term" policy which builds no cash value that can be used for "Living" benefits. If the Key Person policy did have cash value then your answer would be yes. I hope this clarifys.
Chris