LLQP (Life Licence Qualification Program) Practice Exam · Question
Which of the following is a direct consequence of naming an 'Irrevocable' beneficiary on a life insurance policy?
When the Beneficiary is 'Irrevocable,' the policyowner cannot exercise ownership rights like taking a loan or surrendering the policy without the written consen
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Question: Which of the following is a direct consequence of naming an 'Irrevocable' beneficiary on a life insurance policy?
Answer options:
- The policyowner may change the beneficiary at any time without consent. ✅ The policyowner requires the written consent of the beneficiary to take a policy loan.
- The beneficiary must pay the premiums if the policyowner defaults.
- The death benefit is paid to the estate of the policyowner if the beneficiary is still alive.
Correct answer: The policyowner requires the written consent of the beneficiary to take a policy loan.
Explanation: When the Beneficiary is 'Irrevocable,' the policyowner cannot exercise ownership rights like taking a loan or surrendering the policy without the written consent of that beneficiary. Unlike a revocable beneficiary, the irrevocable beneficiary's rights are vested.
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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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