Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

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Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

A. An irrevocable beneficiary

B. A buy-sell agreement

C. Family term rider

D. Third-party ownership

Answer: D. Third-party ownership

Life Insurance

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