LLQP (Life Licence Qualification Program) Practice Exam · Question
What is a key difference between a segregated fund and a mutual fund regarding the death of the owner?
Because a segregated fund is an insurance contract, the 'Statutory Conditions' of life insurance apply, including the ability to name a beneficiary and bypass p
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Question: What is a key difference between a segregated fund and a mutual fund regarding the death of the owner?
Answer options: ✅ Bypassing probate upon the death of the owner.
- Offering guaranteed investment returns of at least 10%.
- Lower Management Expense Ratios (MERs).
- The ability to trade intraday like a stock.
Correct answer: Bypassing probate upon the death of the owner.
Explanation: Because a segregated fund is an insurance contract, the 'Statutory Conditions' of life insurance apply, including the ability to name a beneficiary and bypass probate. Mutual funds do not have this feature.
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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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