LLQP (Life Licence Qualification Program) Practice Exam · Question
Maria, a 40-year-old self-employed consultant in Nova Scotia, is reviewing her existing Universal Life (UL) policy. She notices the Cost of Insurance (COI) has been increasing each year, even though her death benefit and health status haven't changed. Based on this observation, what type of COI structure is most likely implemented in her UL policy?
A Yearly Renewable Term (YRT) COI structure typically charges a COI that increases each year as the insured person ages, reflecting the higher mortality risk at
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Question: Maria, a 40-year-old self-employed consultant in Nova Scotia, is reviewing her existing Universal Life (UL) policy. She notices the Cost of Insurance (COI) has been increasing each year, even though her death benefit and health status haven't changed. Based on this observation, what type of COI structure is most likely implemented in her UL policy?
Answer options:
- Level Cost of Insurance (COI) ✅ Yearly Renewable Term (YRT) COI
- Endowment COI
- Blended COI
Correct answer: Yearly Renewable Term (YRT) COI
Explanation: A Yearly Renewable Term (YRT) COI structure typically charges a COI that increases each year as the insured person ages, reflecting the higher mortality risk at older ages.
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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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