227k views
0 votes
With three partners in a business, how many life insurance policies would be required to insure a cross-purchase buy-sell plan?

A) 9.
B) 12.
C) 3.
D) 6.

User Leftjoin
by
9.0k points

1 Answer

3 votes

Final answer:

In a cross-purchase buy-sell plan, each partner needs to have two life insurance policies - one for themselves and one for each of the other partners. Therefore, there would be 6 life insurance policies required for a cross-purchase buy-sell plan with three partners.

Step-by-step explanation:

In a cross-purchase buy-sell plan, each partner purchases a life insurance policy on all other partners. So, with three partners, each partner needs to have two life insurance policies - one for themselves and one for each of the other partners.

Therefore, in total, there would be 6 life insurance policies required to insure a cross-purchase buy-sell plan with three partners.

User Cwhiii
by
7.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.