IFSE Institute LLQP Life License Qualification Program (LLQP) Online Training
IFSE Institute LLQP Online Training
The questions for LLQP were last updated at Apr 28,2025.
- Exam Code: LLQP
- Exam Name: Life License Qualification Program (LLQP)
- Certification Provider: IFSE Institute
- Latest update: Apr 28,2025
Johann owns a $250,000 whole life insurance policy. The policy has a cash surrender value (CSV) of $55,000 and an adjusted cost basis (ACB) of $30,000. Johann would like to cancel his policy and use the cash surrender value to fund a new business.
If his marginal tax rate is 40%, how much will he have left after cancelling his policy?
- A . $30,000
- B . $33,000
- C . $45,000
- D . $55,000
Akeno is a 65-year-old retired accountant. He is divorced and has a 40-year-old son who is financially independent. Thanks to years of diligent savings, Akeno now enjoys a comfortable retirement. In addition to his pension income, he has over $300,000 invested in shares in his non-registered account. He lives in a mortgage-free home valued at $700,000 and owns a cottage valued at $500,000. The mortgage on the cottage is $100,000. Akeno purchased the homes 30 years ago when housing prices were low. It is important to him to donate $100,000 to the Alzheimer’s Association when he dies.
What is the GREATEST financial risk that would arise in the event of Akeno’s death?
- A . Loss of income.
- B . Debt repayment.
- C . Income tax.
- D . Estate creation.
Bethenny meets with Harrison, an insurance agent, to review her life insurance needs. Bethenny is a single mother of a 3-year-old daughter named Emma. Bethenny’s main concern is that Emma is taken care of financially if Bethenny were to die prematurely. Emma’s father Steve suffers from chronic alcoholism and is homeless. He has not been present in Emma’s day-to-day life. After careful analysis, Harrison suggests that Bethenny purchase a $250,000 20-year term insurance policy.
Given Bethenny’s situation, who should she name as a beneficiary on her policy?
- A . Her estate.
- B . Emma.
- C . A trustee.
- D . Steve.
Anita is a 50-year-old woman who is thinking of purchasing a $150,000 permanent life insurance policy to pay for the capital gains tax that will be payable on her country home upon her death. She had purchased the home twelve years ago and wants to bequeath the property to her niece when she dies.
Which of the following features about a permanent insurance policy is TRUE?
- A . The coverage ends when Anita turns 100.
- B . The premiums will remain level for the duration of the contract.
- C . The policy cannot be cancelled by Anita.
- D . Anita must contact the insurer if there is a change in the insurability.
Francis owns a $250,000 insurance policy with an accidental death and dismemberment (AD&D) rider. Francis calls his insurance agent Andrew to inform him that he permanently lost the use of his right hand. He explains to Andrew that his brother shot him when he broke into his brother’s house to recover a gold watch that was rightfully his. Francis wants to know how much he will receive from his AD&D rider.
- A . Francis will receive a benefit of $165,000.
- B . Francis will receive a benefit of $187,500.
- C . Francis will receive a benefit of $250,000.
- D . Francis will not receive any benefit.
Larissa is a 65-year-old retired marketing executive. She is single and has no dependents. Larissa accepted a generous retirement package from her employer five years ago and used her early retirement cash bonus to consolidate her financial affairs. She paid off mortgages on both her principal residence (a condo) and her vacation cottage. The fair market value (FMV) of the real estate increased significantly over the years. She named her sister Natalya as the sole beneficiary of her estate. In addition to the two properties, Larissa’s estate includes a registered retirement savings plan (RRSP) and shares of Apple Inc. that she purchased in her tax-free savings account (TFSA) 10 years ago.
If Larissa were to pass away today, which of her assets would be fully taxable on her final income tax return?
- A . The condo.
- B . The cottage.
- C . The TFSA.
- D . The RRSP.
Svetlana is a 45-year-old single mother with two children: Georgi 17; and Ingrid 13. The children’s father, Vladimir, has a serious gambling problem and only visits them sporadically. Vladimir’s younger brother Sergei, on the other hand, is a dependable and helpful uncle who helps Svetlana regularly with the children. Svetlana meets with Robert, an insurance agent to review her life insurance needs because she wants to make sure that her children are taken care of if she were to die prematurely. Robert suggests that she purchase a $200,000 policy.
Who should she name as a beneficiary?
- A . Georgi and Ingrid but name Vladimir as a trustee.
- B . Georgi and Ingrid but name Sergei as a trustee.
- C . Sergei
- D . Vladimir
Edna is a 62-year-old widow living in Quebec. She meets with Yolanda, her insurance agent. Edna worked part-time her whole life as a seamstress and has no savings. Her husband Donald had been working as a greeter at the local box store until his death 2 months ago at the age of 67. Since his passing, Edna has been struggling financially.
She would like to know which of the following organizations will immediately pay her a benefit?
- A . Workers’ Compensation.
- B . Old Age Security (OAS) allowance for surviving spouse.
- C . Canada Pension Plan (CPP) survivor benefits.
- D . She will not receive any benefit.
On February 5, Ayla started working at Larson Group Inc. as an administrative assistant. Larson Group offers all employees a group health, dental and life insurance plan that commences after a 3-month waiting period. On April 7, Ayla felt ill and drove herself to the hospital. The doctor diagnosed two clogged arteries and performed an emergency surgery. Ayla was unable to work for 2 months, then died of complications on June 9. Will the group insurance plan pay the death benefit?
- A . Yes, because she died of natural causes.
- B . Yes, because her group life coverage started on May 5.
- C . No, because Ayla was not actively at work when the coverage started.
- D . No, because Ayla did not provide the insurer with any proof of insurability.
Bea is a married 65-year-old woman applying for a life insurance policy. She meets with Stanley, her insurance agent, to review her insurance needs. Stanley inquires if Bea has started receiving Old Age Security (OAS) and Canada Pension Plan (CPP) benefits.
Why is it important for Stanley to know this?
- A . These funds are taxable and may increase her need for life insurance.
- B . Her life insurance needs may decrease if she is retired.
- C . Her spouse may be eligible for survivor benefits upon her death.
- D . To calculate her retirement income.
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