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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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