LLQP (Life Licence Qualification Program) Practice Exam · Question
Which non-forfeiture option allows the policyowner to stop paying premiums while maintaining permanent coverage, albeit for a lower death benefit?
The 'Reduced Paid-Up' option allows the policyowner to stop paying premiums and use the existing cash value to purchase a smaller amount of fully paid-up perman
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Question: Which non-forfeiture option allows the policyowner to stop paying premiums while maintaining permanent coverage, albeit for a lower death benefit?
Answer options:
- Taking the cash value and ending the coverage.
- Using the cash value to buy term insurance for as long as possible.
- Paying only the interest on the policy loan. ✅ Using the cash value to purchase a smaller amount of permanent insurance with no further premiums due.
Correct answer: Using the cash value to purchase a smaller amount of permanent insurance with no further premiums due.
Explanation: The 'Reduced Paid-Up' option allows the policyowner to stop paying premiums and use the existing cash value to purchase a smaller amount of fully paid-up permanent insurance. Peace of mind is maintained with no more payments.
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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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