LLQP (Life Licence Qualification Program) Practice Exam · Question
Two business partners want to ensure that if one dies, the other has the funds to purchase the deceased partner's interest in the business. Which insurance structure is most efficient for this purpose?
Joint First-to-Die (JFTD) insurance is commonly used for buy-sell agreements between business partners. Upon the first partner's death, the benefit provides the
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Question: Two business partners want to ensure that if one dies, the other has the funds to purchase the deceased partner's interest in the business. Which insurance structure is most efficient for this purpose?
Answer options:
- Joint Last-to-Die policy
- Ten-year Renewable Term policy ✅ Joint First-to-Die policy
- Individual Universal Life policies with a child rider
Correct answer: Joint First-to-Die policy
Explanation: Joint First-to-Die (JFTD) insurance is commonly used for buy-sell agreements between business partners. Upon the first partner's death, the benefit provides the necessary funds for the surviving partner to buy out the deceased partner's shares from their estate. Joint-last-to-die is better for estate taxes/heirs.
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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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