LLQP (Life Licence Qualification Program) Practice Exam · Question
Which of the following is NOT a standard dividend option available to a policyowner of a participating whole life policy?
Dividends in a participating policy can be used in several ways: Cash, Premium Reduction, Accumulation (at interest), Paid-up Additions (buying more small amoun
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Question: Which of the following is NOT a standard dividend option available to a policyowner of a participating whole life policy?
Answer options:
- Paid-up Additions
- Premium Reduction ✅ Extended Term Insurance
- Accumulation at Interest
Correct answer: Extended Term Insurance
Explanation: Dividends in a participating policy can be used in several ways: Cash, Premium Reduction, Accumulation (at interest), Paid-up Additions (buying more small amounts of permanent coverage), or purchasing Term Insurance. 'Cash Surrender' is a feature of the policy, not a standard dividend option (though you can take the dividend as cash).
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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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