LLQP (Life Licence Qualification Program) Practice Exam · Question
What is the 'reset' feature found in some segregated fund contracts?
The reset option allows the contract holder to lock in market gains, establishing a new, higher value for the maturity and death benefit guarantees, though this
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Question: What is the 'reset' feature found in some segregated fund contracts?
Answer options:
- It allows the contract holder to change their designated beneficiary annually.
- It automatically rebalances the investment mix back to its target allocation. ✅ It allows the owner to lock in investment gains, which resets the guaranteed amounts to a new, higher level.
- It is a mandatory annual review of the contract by the advisor.
Correct answer: It allows the owner to lock in investment gains, which resets the guaranteed amounts to a new, higher level.
Explanation: The reset option allows the contract holder to lock in market gains, establishing a new, higher value for the maturity and death benefit guarantees, though this typically restarts the 10-year maturity period.
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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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