LLQP (Life Licence Qualification Program) Practice Exam · Question
The 'capital retention' method of needs analysis is designed to:
The capital retention (or capital conservation) approach focuses on providing a lump sum large enough that its investment income alone can meet the survivors' n
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Question: The 'capital retention' method of needs analysis is designed to:
Answer options:
- Calculate the amount of capital that will be fully spent by the end of the dependency period.
- Determine the present value of all future income needs. ✅ Preserve the initial capital sum, with dependents living off the investment income it generates.
- Pay off all debts, including the mortgage, immediately.
Correct answer: Preserve the initial capital sum, with dependents living off the investment income it generates.
Explanation: The capital retention (or capital conservation) approach focuses on providing a lump sum large enough that its investment income alone can meet the survivors' needs, leaving the principal intact.
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- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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