Aloft Aircraft Company can purchase ____ life insurance on its chief aircraft designer as an inexpensive way to cover its losses should something untoward happen to that key person.
A) whole
B) universal
C) term
D) blanket coverage

Question

Quizplus · Accepted Answer

Term life insurance provides coverage for a specific period of time, and is generally less expensive than whole or universal life insurance. In the case of a key person such as the chief aircraft designer at Aloft Aircraft Company, a term policy could provide coverage that is sufficient to cover the company's losses in the event of the individual's death or disability, while keeping premiums low. Blanket coverage is not a type of life insurance policy, but rather a type of property and casualty insurance that covers a group of assets, and whole and universal life insurance policies are typically more expensive than term policies.

Aloft Aircraft Company Can Purchase ____ Life Insurance on Its