John and Kathy, age 60 and 62, have spent many summers at the family cottage with...

Transcribed Image Text:

John and Kathy, age 60 and 62, have spent many summers at the family cottage with their daughter, Susan. They would like to retain ownership of the cottage while still alive, and then want to leave the cottage to Susan when they die. John and Kathy, both owners of the cottage, are concerned that Susan will be unable to pay the capital gains taxes due on the cottage, which is estimated to be $200,000. They would like to purchase insurance to cover this liability. Which of the following insurance strategies would be MOST suitable for John and Kathy? joint first-to-die policy on the lives of John and Kathy with death benefit $200,000 joint last-to-die policy on the lives of John and Kathy with death benefit $200,000 Oa) Ob) Oc) individual life policies on each of John and Kathy, each with a $100,000 death benefit Od) individual life policies on each of John and Kathy, each with a $200,000 death benefit John and Kathy, age 60 and 62, have spent many summers at the family cottage with their daughter, Susan. They would like to retain ownership of the cottage while still alive, and then want to leave the cottage to Susan when they die. John and Kathy, both owners of the cottage, are concerned that Susan will be unable to pay the capital gains taxes due on the cottage, which is estimated to be $200,000. They would like to purchase insurance to cover this liability. Which of the following insurance strategies would be MOST suitable for John and Kathy? joint first-to-die policy on the lives of John and Kathy with death benefit $200,000 joint last-to-die policy on the lives of John and Kathy with death benefit $200,000 Oa) Ob) Oc) individual life policies on each of John and Kathy, each with a $100,000 death benefit Od) individual life policies on each of John and Kathy, each with a $200,000 death benefit

Answer rating: 100% (QA)

Answer Option a joint first to die policy on life of John and Cathy with death benefit of 200000 ... View the full answer