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5 votes
All of these are common personal uses of life insurance except

a. Pay final expenses
b. Fund a child's education
c. Replace an insured's income
d. Fund a Buy-Sell Agreement

1 Answer

4 votes

Final answer:

All of the options listed in the question could be personal uses of life insurance, except for funding a Buy-Sell Agreement. Option d.

Step-by-step explanation:

Life insurance is designed to provide financial protection for survivors of the insured, but it can also serve other purposes. All of the options listed in the question could be personal uses of life insurance, except for d. Funding a Buy-Sell Agreement.

A Buy-Sell Agreement is an agreement between business partners or co-owners of a company. It outlines what will happen to an individual's ownership shares if they die or become disabled. In this case, the purpose of life insurance is to provide the funds necessary to buy out the deceased or disabled owner's shares.

Therefore, a Buy-Sell Agreement is not a personal use of life insurance, but rather a business use. Option d.

answered
User Ratul Ghosh
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