LLQP (Life Licence Qualification Program) Practice Exam · Question
Which feature is unique to a Segregated Fund contract that is generally NOT available in a Mutual Fund?
While mutual funds and segregated funds both offer diversification, the death benefit and maturity guarantees are unique to insurance-based segregated funds. Po
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Question: Which feature is unique to a Segregated Fund contract that is generally NOT available in a Mutual Fund?
Answer options: ✅ Death benefit and maturity guarantees.
- Daily valuation of units.
- Professional management of the underlying assets.
- The ability to invest in a diversified portfolio of equities.
Correct answer: Death benefit and maturity guarantees.
Explanation: While mutual funds and segregated funds both offer diversification, the death benefit and maturity guarantees are unique to insurance-based segregated funds. Potential creditor protection is also a key feature of segregated funds.
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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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