LLQP (Life Licence Qualification Program) Practice Exam · Question
Which feature of a segregated fund is particularly beneficial for a business owner concerned about bankruptcy?
Segregated funds are attractive to small business owners and professionals because, as insurance contracts, they can offer protection from creditors if a family
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Question: Which feature of a segregated fund is particularly beneficial for a business owner concerned about bankruptcy?
Answer options:
- They are exempt from all federal income taxes. ✅ They offer potential protection from creditors.
- They are guaranteed by the Canada Deposit Insurance Corporation (CDIC).
- The underlying assets are held by the provincial government.
Correct answer: They offer potential protection from creditors.
Explanation: Segregated funds are attractive to small business owners and professionals because, as insurance contracts, they can offer protection from creditors if a family class beneficiary (like a spouse or child) is named.
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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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