Collateral Approach Is a Term Used to Indicate Employer Ownership

question 10

True/False

Collateral approach is a term used to indicate employer ownership of an insurance policy.(Split-Dollar Life Insurance)

---

Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, essentially what is given up when choosing one option over another.

Specialization

The practice of focusing effort on a particular field or discipline, leading to increased efficiency and expertise in that area.

Cheese

A dairy product made from curdled or cultured milk, coming in various textures and flavors.

Opportunity Cost

The loss of value from not opting for the closely competing alternative when faced with a decision.