LLQP (Life Licence Qualification Program) Practice Exam · Question
What is a key advantage of a segregated fund over a mutual fund regarding estate planning?
Unlike mutual funds, segregated funds are insurance contracts. This allows the owner to name a beneficiary, which facilitates the bypass of probate, ensuring th
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Question: What is a key advantage of a segregated fund over a mutual fund regarding estate planning?
Answer options: ✅ The death benefit can bypass probate if a beneficiary is named.
- The management expense ratios (MERs) are typically lower than mutual funds.
- They are regulated by provincial securities commissions rather than insurance regulators.
- They offer a guaranteed rate of return on the underlying investments.
Correct answer: The death benefit can bypass probate if a beneficiary is named.
Explanation: Unlike mutual funds, segregated funds are insurance contracts. This allows the owner to name a beneficiary, which facilitates the bypass of probate, ensuring the death benefit is paid directly to the beneficiary.
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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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