LLQP (Life Licence Qualification Program) Practice Exam · Question
Which of the following is a unique advantage of a segregated fund compared to a mutual fund?
One of the primary advantages of segregated funds over mutual funds is that they may offer protection from creditors if a family class beneficiary (spouse, chil
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Question: Which of the following is a unique advantage of a segregated fund compared to a mutual fund?
Answer options: ✅ Potential protection from creditors if a family class beneficiary is named.
- Higher historical returns compared to mutual funds.
- Lower management expense ratios (MERs) than mutual funds.
- The ability to trade intraday like stocks.
Correct answer: Potential protection from creditors if a family class beneficiary is named.
Explanation: One of the primary advantages of segregated funds over mutual funds is that they may offer protection from creditors if a family class beneficiary (spouse, child, parent) or an irrevocable beneficiary is named.
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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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