Akila is an insurance agent and she meets with a potential client, Hussein. Hussein is an entrepreneur and business owner, and would like to learn more about how insurance can address the needs of his business. Which of the following statements about business life insurance is CORRECT?

a) If a buy-sell agreement is funded by business-owned insurance, premiums are generally tax-deductible.

b) In a split-dollar life insurance arrangement, the corporation could own the death benefit, while the employee could own the policy’s cash value.

c) If the business acquires term life insurance on a key person because a lender requires it, the business cannot deduct the premiums from its business income.

d) Premiums are generally tax-deductible for criss-cross insurance used to fund a cross-purchase buy-sell agreement.

Answer rating: 100% (QA)

The following statement is correct C If the business a... View the full answer