LLQP Exam Question 116
Jenny purchased a whole life insurance policy 10 years ago. She was recently diagnosed with a terminal illness and the doctor told her she got an estimated life span of 12 months. She would like to spend the rest of her time with family doing vacation across the world. She brought Ellen, her daughter and also her beneficiary to the life insurance agent and wants to find out about the claims process.
What does Ellen need to know regarding the claims process in this situation?
What does Ellen need to know regarding the claims process in this situation?
LLQP Exam Question 117
On June 5, Karl completed an application for critical illness coverage and paid an annual premiumof $1,250.
On June 25, the underwriter approved the policy under standard conditions and sent it to the agent, who received it on July 7. The agent contacted the client on August 8 and the date for delivery was set at August
10. On August 12, Karl learns that he will lose his job at the end of the month. As such, he decides to cancel the policy, returning it to the insurer on August 15. What is the rule governing Karl's right to have his premium refunded?
On June 25, the underwriter approved the policy under standard conditions and sent it to the agent, who received it on July 7. The agent contacted the client on August 8 and the date for delivery was set at August
10. On August 12, Karl learns that he will lose his job at the end of the month. As such, he decides to cancel the policy, returning it to the insurer on August 15. What is the rule governing Karl's right to have his premium refunded?
LLQP Exam Question 118
(Miles receives a $500,000 inheritance. He wants to invest it in a high-risk segregated fund but is nervous about potential losses.
What unique advantage of segregated funds enables Miles to pursue this strategy?)
What unique advantage of segregated funds enables Miles to pursue this strategy?)
LLQP Exam Question 119
Georges is a widower and sole shareholder of the firm Distribution Beluga. Upon his death, he will bequeath the firm to his son, Kevin. During a recent discussion with his accountant, the accountant told Georges that when he dies, Kevin will face a significant tax burden because the fair market value of the firm (a Canadian- controlled private corporation), once the ACB is deducted, is $4,600,000. Furthermore, Georges has never taken advantage of the lifetime capital gains exemption, which will be estimated to be $1,250,000. George's tax rate is 48%.
What will Kevin's tax debt be upon George's death?
What will Kevin's tax debt be upon George's death?
LLQP Exam Question 120
Dominic suffers a heart attack on October 1 and dies a little over a month later, on November 7. At the time of his death, he owned a $150,000 critical illness (CI) insurance policy, purchased 10 years earlier. Dominic never failed to pay the $100 monthly premium. When he died, the insurer had not yet issued the benefit payment.
How will the CI benefit be treated?
How will the CI benefit be treated?