LLQP (Life Licence Qualification Program) Practice Exam · Question
For which scenario is a Joint Last-to-Die (JLTD) life insurance policy most appropriate?
Joint First-to-Die (JFTD) is common for buy-sell agreements or mortgages, as it pays out upon the first death to provide liquidity. Joint Last-to-Die (JLTD) is
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Question: For which scenario is a Joint Last-to-Die (JLTD) life insurance policy most appropriate?
Answer options:
- Paying off a mortgage for a young couple.
- Funding a buy-sell agreement between two business partners. ✅ Providing funds to pay capital gains taxes upon the death of the second spouse.
- Replacing the income of the primary breadwinner.
Correct answer: Providing funds to pay capital gains taxes upon the death of the second spouse.
Explanation: Joint First-to-Die (JFTD) is common for buy-sell agreements or mortgages, as it pays out upon the first death to provide liquidity. Joint Last-to-Die (JLTD) is used for estate taxes (capital gains at death) because those taxes are usually deferred until the second spouse dies.
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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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