Authentic IFSE Institute Certification Exam LLQP Questions Answers

Given Pierre’sshort life expectancy, aterm annuity(paying for a specific period) would ensure he receivesguaranteed payments for a fixed number of years, aligning with his situation and providing steady cash flow.

Exact Extract:

"A term annuity pays a fixed income for a set number of years. It is appropriate for clients expecting a limited lifespan and wishing to maximize payouts during their lifetime."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 3.2.3 Duration of the Annuity【49:2†Segfunds-E313-2020-12-7ED.pdf**)

A spousal RRSP is beneficial for couples with differing income levels as it allows for income splitting during retirement. This is advantageous because it enables the higher-income spouse to contribute to the RRSP of the lower-income spouse. When the funds are eventually withdrawn during retirement, they are taxed at the lower-income spouse’s rate, potentially reducing the couple’s overall tax burden. This aligns with the LLQP guideline on income splitting as a tax minimization strategy​.

Option B is incorrect because the contributions to a spousal RRSP reduce the contribution room of the contributing spouse, not the recipient. Option C is technically accurate but does not directly address the primary advantage of a spousal RRSP in terms of tax planning, and Option Dis correct regarding extending tax benefits but does not directly highlight the immediate benefit of income splitting for the couple.

With a75% maturity guarantee, Yamina is guaranteed to receive at least75% of the original investmentat maturity, regardless of market performance.

75% × $2,500 =$1,875, but because there is aresetpossibility if applicable and a100% death benefit guarantee, and if there had been any resets (not mentioned here), she would get the original amount$2,500based on the basic guarantee.

Exact Extract:

"At maturity, if the market value is less than the guaranteed amount (typically 75% or 100% of the deposited amount), the maturity guarantee is paid."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 2.1.1 Guarantees【33:4†Segfunds-E313-2020-12-7ED.pdf**)