An applicant purchases a life insurance policy to avoid the forced sale of assets upon his death. What is this action called?

While capital retention involves maintaining ownership of assets for future use, it does not specifically address the protection of an estate from forced sales following death. This term lacks the focus on life insurance as a protective measure for beneficiaries, making it less relevant in this context.

Buy-sell funding refers to a strategy used in business partnerships to ensure that a partner's share of the business can be purchased by the remaining partners in the event of death or departure. Although related to insurance, it does not encompass the broader concept of protecting an individual's estate from asset liquidation.

Capital liquidation involves the process of converting assets into cash, typically during a sale or dissolution of a business. This choice is contrary to the intent of purchasing life insurance, which is to avoid the necessity of liquidating assets upon the policyholder's death.