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Question
At the time of retirement of a partner, firm gets ______ from the insurance company against the Joint Life Policy taken jointly for all the partners.
At the time of retirement of a partner, firm gets ______ from the insurance company against the Joint Life Policy taken jointly for all the partners.
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Solution
The correct option is D Surrender Value for all the partners.
A joint life policy is taken by the partners of the
firm that secures the life of the partners jointly i.e. it is one policy that
is for all the partners and it gets matured at the death of a partner or completion
of the policy period whichever is earlier. This policy helps in compensating
the partner at the time of his death or retirement. At the time of retirement, the firm gets the policy amount from the insurance company against the joint-life policy for all the partners. The correct option is 'A'
A joint life policy is taken by the partners of the firm that secures the life of the partners jointly i.e. it is one policy that is for all the partners and it gets matured at the death of a partner or completion of the policy period whichever is earlier. This policy helps in compensating the partner at the time of his death or retirement. At the time of retirement, the firm gets the policy amount from the insurance company against the joint-life policy for all the partners. The correct option is 'A'
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