LLQP (Life Licence Qualification Program) Practice Exam · Question
Jamie, a 30-year-old entrepreneur in Manitoba, is evaluating a Universal Life (UL) policy and is concerned about the investment aspect. Which of the following investment options, typically found within a UL policy, provides protection against market downturns due to its guarantee features, while offering participation in market growth?
Segregated funds, common within UL policies, offer maturity and death benefit guarantees (e.g., 75% or 100% of deposits) which protect against market downturns,
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Question: Jamie, a 30-year-old entrepreneur in Manitoba, is evaluating a Universal Life (UL) policy and is concerned about the investment aspect. Which of the following investment options, typically found within a UL policy, provides protection against market downturns due to its guarantee features, while offering participation in market growth?
Answer options:
- Money market funds
- Guaranteed interest accounts (GIAs)
- Equity index funds (non-guaranteed) ✅ Segregated funds
Correct answer: Segregated funds
Explanation: Segregated funds, common within UL policies, offer maturity and death benefit guarantees (e.g., 75% or 100% of deposits) which protect against market downturns, while still allowing for investment growth.
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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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