Which of the following statements accurately describe characteristics of using life insurance for the informal funding of a nonqualified deferred compensation plan?

I. It represents an asset that may be purchased to fund the employer's unsecured promise to pay deferred amounts to the employee.

II. It offers the advantage of being able to fund a death benefit immediately.

III. It offers the advantage of various settlement options.

IV. It offers the advantage of simplified administration since death proceeds are paid directly to an employee's surviving spouse or other beneficiary.

A)

I, II, and III

B)

I, II, III, and IV

C)

I and II

D)

II and III