Which statement correctly compares business and personal life insurance?

The statement that both business and personal life insurance policies create immediate payment upon the death of the insured is correct because this is a fundamental function of life insurance in general. Both types of insurance are designed to provide financial support to the beneficiaries or the business upon the insured individual's death, thereby ensuring that there is a level of financial protection and continuity.

In personal life insurance, the death benefit can help the family cover living expenses, pay off debts, or fund future needs like children's education. Similarly, in business life insurance, the death benefit can assist in covering operational costs, facilitate the buy-sell agreement among partners, or ensure that the business can continue to function smoothly without the presence of the key employee or owner.

By understanding this commonality, it becomes clear that the primary purpose of life insurance—providing a death benefit upon the insured’s demise—applies to both personal and business insurance alike.