LLQP (Life Licence Qualification Program) Practice Exam · Question
What is a unique characteristic of a Life Income Fund (LIF) compared to a Registered Retirement Income Fund (RRIF)?
Under Life Income Fund (LIF) rules, once the policyowner reaches a certain age (usually the end of the year they turn 71), they are required to start taking a m
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Question: What is a unique characteristic of a Life Income Fund (LIF) compared to a Registered Retirement Income Fund (RRIF)?
Answer options: ✅ A maximum annual withdrawal limit.
- A minimum annual withdrawal limit.
- A requirement to name a spouse as beneficiary.
- Tax-deferred growth of investments.
Correct answer: A maximum annual withdrawal limit.
Explanation: Under Life Income Fund (LIF) rules, once the policyowner reaches a certain age (usually the end of the year they turn 71), they are required to start taking a minimum annual income. However, there is also a 'maximum' limit on how much can be withdrawn annually to ensure the funds last for a lifetime. An RRSP/RRIF has no maximum.
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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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