At the time of retirement of a partner, firm gets from the insurance company against the Joint Life Policy taken severally for each partner _____________.
At the time of retirement of a partner, firm gets from the insurance company against the Joint Life Policy taken severally for each partner _____________.
The correct option is C Surrender Value for all the partners
A Joint Life Policy (JLP) is an insurance policy which is
taken out by the partnership firm on the joint lives of all the partners. The amount of policy is payable by the Insurance Company either on the
death or on maturity of policy,
whichever is earlier. The firm pays annual premium to the insurer against
the policy.
Instead
of life policy taken jointly on the name of all partners, all the partners may
take individual life policies for each of them by paying the premium from the
firm. In the event of retirement, the retired partner is entitled for the
surrender value of life policies of all the partners.
A Joint Life Policy (JLP) is an insurance policy which is taken out by the partnership firm on the joint lives of all the partners. The amount of policy is payable by the Insurance Company either on the death or on maturity of policy, whichever is earlier. The firm pays annual premium to the insurer against the policy.
Instead of life policy taken jointly on the name of all partners, all the partners may take individual life policies for each of them by paying the premium from the firm. In the event of retirement, the retired partner is entitled for the surrender value of life policies of all the partners.
