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?

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

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