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LLQP (Life Licence Qualification Program) Practice Exam · Question

Robert invested $200,000 into a segregated fund. The contract has a 100% death benefit guarantee and a 75% maturity guarantee. Five years later, the market value of his investment is $180,000. If Robert passes away at this point, what is the minimum amount his beneficiary will receive from the segregated fund contract?

The death benefit guarantee ensures that the beneficiary receives at least 100% of the deposits made, less any withdrawals. Since Robert deposited $200,000 and

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Question: Robert invested $200,000 into a segregated fund. The contract has a 100% death benefit guarantee and a 75% maturity guarantee. Five years later, the market value of his investment is $180,000. If Robert passes away at this point, what is the minimum amount his beneficiary will receive from the segregated fund contract?

Answer options:

  • $180,000
  • $150,000 ✅ $200,000
  • $135,000

Correct answer: $200,000

Explanation: The death benefit guarantee ensures that the beneficiary receives at least 100% of the deposits made, less any withdrawals. Since Robert deposited $200,000 and the market value is $180,000, the guarantee ensures the beneficiary receives $200,000.

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