Which of the following statements pertaining to business key-person disability insurance is NOT correct?
A) Benefits from the policy are used to indemnify a business for the loss of the services of a key employee or partner who becomes totally disabled.
B) These policies are used to indemnify a business in the case of a merger with another company.
C) Premiums are not tax deductible as a business expense.
D) Benefits, when paid, are tax-free.
Answer: B) These policies are used to indemnify a business in the case of a merger with another company.
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