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Life License Qualification Program (LLQP)

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Total Questions : 328

Dive into our fully updated and stable LLQP practice test platform, featuring all the latest Life License Qualification Program exam questions added this week. Our preparation tool is more than just a IFSE Institute study aid; it's a strategic advantage.

Our free Life License Qualification Program practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about LLQP. Use this test to pinpoint which areas you need to focus your study on.

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Question # 41

(Ten years ago, Yamina invested $2,500 in a segregated fund contract with a 75%/100% guarantee structure. The market value of the contract peaked at $4,500 but then fell. Now, at maturity, the units are worth $2,250.

How much can Yamina expect to receive?)

Options:

A.  

$3,375

B.  

$2,500

C.  

$2,250

D.  

$1,875

Discussion 0
Question # 42

(Germaine, a shareholder-manager, already has a group RRSP for her employees. She now wants to establish a second group savings plan that allows employees to withdraw money at any time without additional taxes or penalties.

Which plan fits her needs?)

Options:

A.  

ADBPP.

B.  

A group TFS

A.  

C.  

APRPP.

D.  

ADPSP.

Discussion 0
Question # 43

(Matthew, 40 years old, is leaving his employer (XYZ Corp) and has $100,000 in a group RRSP.

What should Shawn, the advisor, do?)

Options:

A.  

Provide Matthew with forms to transfer his group RRSP holdings to an individual RRSP.

B.  

Calculate the commuted value of Matthew’s group RRSP account and arrange transfer to the DPSP.

C.  

Arrange for the transfer of the cash value of Matthew’s group RRSP to the group TFS

A.  

D.  

Arrange for the transfer of Matthew’s group RRSP to his wife’s group RRSP.

Discussion 0
Question # 44

(Ulysses, aged 35, is a risk taker who likes to concentrate investments in specific industries expecting higher returns long term.

Which feature of segregated funds will be most appealing to Ulysses?)

Options:

A.  

Creditor protection

B.  

Death benefit guarantee

C.  

Right of rescission

D.  

Resets

Discussion 0
Question # 45

Life insurance agent Bernardine meets with Albert, a new 47-year-old client, to review his investor profile. In doing so, Bernardine notes that Albert faces a very real risk of losing his job.

Which type of investment would best suit Albert to guard against such a risk?

Options:

A.  

An investment that can be cashed out quickly without a decrease in value.

B.  

An investment that provides lifelong income, like an annuity.

C.  

An investment that provides creditor protection.

D.  

An investment that provides broad diversification.

Discussion 0
Question # 46

(Joe and Joy, both aged 65, have $280,000 in savings and a $200,000 joint first-to-die life insurance policy. They want to buy an annuity to provide steady income in retirement.

What type of annuity would best suit their needs?)

Options:

A.  

A single life annuity, as their life insurance policy will fund the survivor’s retirement.

B.  

A joint life annuity that will pay the survivor 50% of the full benefit.

C.  

A T-90 annuity that will provide an income until at least the first death.

D.  

A variable income annuity that can provide larger sums if the market performs well.

Discussion 0
Question # 47

(Jerry, aged 63, is getting ready to retire. His pension statement shows contributions, investment choices, and performance data.

From among the following types of pension plans, which one was Jerry a member of?)

Options:

A.  

Group life income fund.

B.  

Defined benefit pension plan.

C.  

Defined contribution pension plan.

D.  

Deferred profit-sharing plan.

Discussion 0
Question # 48

Hana, a 25-year-old personal assistant, recently got a job where the employer offers all employees access to a defined contribution pension plan (DCPP). Hana meets with the group insurance agent, Tom, because she must choose her investments and she doesn't know what she should choose. She is not very knowledgeable about investments, but since the money will only be used at retirement, she wants to invest in a fund that combines stocks and bonds and that is easy to understand.

Which fund should Tom suggest?

Options:

A.  

Balanced Fund

B.  

Bond Fund

C.  

Dividend Fund

D.  

Target date Fund

Discussion 0
Question # 49

(Arthur's assets include a home worth $744,000, savings of $41,000, and a whole life insurance policy with a death benefit of $300,000 and a cash value of $196,000. His liabilities include a $150,000 reverse mortgage and $2,090 income tax owed.

What is Arthur's net worth?)

Options:

A.  

$1,082,910

B.  

$932,910

C.  

$828,910

D.  

$678,910

Discussion 0
Question # 50

Caleb meets with Miles, his insurance agent, to invest for his retirement. Caleb tells Miles that he will not need his funds for the next 25 years, he is comfortable with market fluctuations, and he would like a fund that mimics the S&P/TSX Composite index.

Which of the following funds will best suit Caleb's needs?

Options:

A.  

Equity fund

B.  

Target date fund

C.  

Dividend fund

D.  

Index fund

Discussion 0
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