LLQP (Life Licence Qualification Program) Practice Exam · Question
The risk that the purchasing power of a fixed death benefit will decrease over time due to the rising cost of living is known as:
Inflation reduces the purchasing power of money over time, meaning a fixed death benefit or fixed pension payment will buy fewer goods and services in the futur
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Question: The risk that the purchasing power of a fixed death benefit will decrease over time due to the rising cost of living is known as:
Answer options:
- Deflation.
- Market Volatility. ✅ Inflation.
- Liquidity Risk.
Correct answer: Inflation.
Explanation: Inflation reduces the purchasing power of money over time, meaning a fixed death benefit or fixed pension payment will buy fewer goods and services in the future.
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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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