LLQP (Life Licence Qualification Program) Practice Exam · Question
Emily, a 30-year-old single parent in Quebec, earns $75,000 annually. She wants to ensure her child's needs are met if she were to pass away. Her advisor recommends using the Multiple-of-Earnings approach. If her advisor suggests a multiple of 10 times her annual income, how much life insurance would be indicated by this method?
The Multiple-of-Earnings approach is a simplified method where the desired insurance coverage is a multiple of the insured's annual income. In this case, 10 * $
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Question: Emily, a 30-year-old single parent in Quebec, earns $75,000 annually. She wants to ensure her child's needs are met if she were to pass away. Her advisor recommends using the Multiple-of-Earnings approach. If her advisor suggests a multiple of 10 times her annual income, how much life insurance would be indicated by this method?
Answer options: ✅ $750,000
- $500,000
- $1,000,000
- $600,000
Correct answer: $750,000
Explanation: The Multiple-of-Earnings approach is a simplified method where the desired insurance coverage is a multiple of the insured's annual income. In this case, 10 * $75,000 = $750,000.
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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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