LLQP (Life Licence Qualification Program) Practice Exam · Question
Which feature of a segregated fund is generally NOT available to a mutual fund investor?
Because segregated funds are insurance contracts, they offer potential protection from creditors if a person in a specific class (such as a spouse, parent, chil
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Question: Which feature of a segregated fund is generally NOT available to a mutual fund investor?
Answer options: ✅ Potential protection from creditors.
- Guaranteed annual returns of at least 5%.
- Lower management expense ratios (MERs) than mutual funds.
- The ability to trade shares on a public stock exchange.
Correct answer: Potential protection from creditors.
Explanation: Because segregated funds are insurance contracts, they offer potential protection from creditors if a person in a specific class (such as a spouse, parent, child, or grandchild) is named as the beneficiary. Mutual funds do not offer this statutory protection.
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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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