Final answer:
A business typically would not be the beneficiary of whole life insurance taken out on an employee, as these policies are intended to benefit the employee's family or estate. Businesses usually benefit from policies like key person life insurance, business overhead expense insurance, or split-dollar life insurance.
Step-by-step explanation:
The student is asking about which type of insurance policy a business would not be the beneficiary on. The types of policies listed are key person life insurance, business overhead expense insurance, split-dollar life insurance, and whole life insurance on an employee. Businesses typically take out these types of policies to protect against financial loss due to various circumstances, such as the death of a key employee, ongoing business expenses, or as a form of executive compensation.
However, in the options provided, whole life insurance on an employee is generally the one a business would not be the beneficiary of. This is because whole life insurance taken out on an employee's life usually benefits the employee's family or the employee's estate rather than the business. In the case of key person life insurance, business overhead expense insurance, and split-dollar life insurance, the business can be a beneficiary as they either protect the business against the loss of a crucial member, cover ongoing expenses, or are used to benefit both the company and the employee in a shared arrangement.