Which of the Following Are Common Uses of Life Insurance

question 44

Multiple Choice

Which of the following are common uses of life insurance proceeds?

• A)Provide an education for children
• B)Set up an estate plan
• C)Establish a regular income for survivors
• D)Accumulate savings
• E)All of these

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Definitions:

Piece-rate Plans

A compensation system where employees are paid based on the quantity of work completed, rather than hours worked.

Gainsharing Plans

Performance-based compensation programs where savings or gains from increased productivity and cost-efficiency are shared with employees.

Share Options

Financial derivative instruments that give the holder the right, but not the obligation, to buy or sell company shares at a specified price before a specified date.

Share Option Plans

Compensation strategies used by organizations to offer employees the option to buy company shares at a future date at a price established when the option is granted, incentivizing long-term commitment.