IFSE Institute LLQP Exam Practice Test Instant Access

Question 1

Edna is a 62-year-old widow living in Quebec. She meets with Yolanda, her insurance agent. Ednaworked part-time her whole life as a seamstress and has no savings. Her husband Donald had been working as a greeter at the local box store until his death 2 months ago at the age of 67. Since his passing, Edna has been struggling financially. She would like to know which of the following organizations will immediately pay her a benefit?

AWorkers' Compensation.

BOld Age Security (OAS) allowance for surviving spouse.

CCanada Pension Plan (CPP) survivor benefits.

DShe will not receive any benefit.

Answer : C

Question 2

(Garry, a 55-year-old self-employed individual with no pension or RRSP savings, wants to make his money work for him over the next 10 years before retirement.

Which product would be suitable?)

AA variable income accrual annuity with deferred payment in 10 years

BA 10-year prescribed payout annuity

CAn accumulation annuity with deferred payment in 10 years

DA 10-year immediate term accumulation annuity

Answer : C

Question 3

(Ted purchased an IVIC 10 years ago. His original deposit was $10,000. The current market value is $15,500 at maturity.

What will the new maturity guarantee be?)

A$10,000, with the new maturity date set 10 years from now.

B$11,625, and the new maturity date will depend on Ted's age.

C$12,000, with the new maturity date set 10 years from now.

D$15,500, and the new maturity date will depend on Ted's age.

Answer : D

Question 4

Denise, age 45, is a member of her employer's group insurance plan, which provides disability protection for 60% of her annual salary of $60,000. Louis, her 42-year-old spouse, is self-employed, has an annual income of $45,000, and no disability protection. As parents of three teenagers, Denise and Louis need $6,000 a month to meet their financial obligations with respect to such expenses as housing, food, car, clothing, and entertainment. Which of the following best characterizes Denise and Louis' current protection?

AThe likelihood of Denise and Louis becoming disabled at the same time is almost zero. So, there is no need for additional protection.

BIn the event Denise is disabled, she will receive $3,000/month. Along with Louis' monthly income of $3,750, the couple will have no difficulty meeting their financial obligations, so there is no need for additional protection.

CDenise should increase her group insurance protection to cover 75% of her income.

DIn the event Louis is disabled and has no monthly income, Denise's income will be insufficient to meet the couple's financial obligations. It is recommended that Louis take out insurance to protect up to 60% of his income.

Answer : D

Question 5

(Priscilla is worried about losing her job in six months. She invests $1,000 per month in segregated equity funds but has limited cash savings.

What should her insurance agent, Arthur, advise?)

AShe should stop buying the segregated funds only if she loses her job.

BShe should stop buying the segregated funds now and build an emergency fund.

CShe should sell her segregated funds immediately to provide an emergency fund.

DShe should leverage her segregated funds immediately to provide cash for an emergency fund.

Answer : B

Question 6

Life insurance agent Alexandra completes a life insurance application with her client, Joshu

a. After three months in underwriting, the application is accepted and the policy is issued on a standard rate. Alexandra goes to deliver the policy. When she gets to Joshua's, he tells her how he just got out of the hospital with a serious blood clot.

What should Alexandra do?

ASimply deliver the policy to Joshua, as his application has already been accepted.

BDeliver the policy to Joshua, but notify the underwriter of the new medical information.

CTell Joshua that, because of the new medical information, she cannot deliver the policy and must put an end to the entire application process.

DTell Joshua that, because of the new medical information, she cannot deliver the policy and must notify the underwriter for further consideration.

Answer : D

Question 7

(Jorge meets with his new financial advisor. He brought a series of documents so that she can determine his investor profile.

Which of the following documents will not be helpful for determining Jorge's investor profile?)

AHis net worth statement, listing assets and liabilities.

BA list of his income sources during retirement.

CA summary of his needs and objectives.

DHis birth certificate.

Answer : D

IFSE Institute LLQP Life License Qualification Program (LLQP) Exam Practice Test