Download LLQP Fee | LLQP Simulations Pdf
Download LLQP Fee | LLQP Simulations Pdf
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Tags: Download LLQP Fee, LLQP Simulations Pdf, New LLQP Test Pass4sure, Exam LLQP Passing Score, LLQP Real Exams
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IFSE Institute LLQP Exam Syllabus Topics:
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IFSE Institute Life License Qualification Program (LLQP) Sample Questions (Q224-Q229):
NEW QUESTION # 224
Jasper is the sole breadwinner in his family. His wife Stephanie has chosen to dedicate all of her time to raising their 3 young children. Luckily, Jasper earns a monthly after-tax income of $25,000 working as a family doctor in the local clinic. Jasper meets with his insurance agent Odda to purchase a life insurance policy that will ensure his family will be able to continue toenjoy their current lifestyle in the event of his death. If his average tax rate is 40% and the investment return is 4%, how much life insurance should Jasper purchase based on the income replacement approach?
- A. $7,500,000
- B. $12,500,000
- C. $625,000
- D. $1,041,666
Answer: B
Explanation:
The income replacement approach calculates the amount of life insurance needed to replace Jasper'safter-tax income for his dependents over a given period, accounting for an investment return. To maintain the family's current lifestyle, we need to determine the capital required to generate a monthly after-tax income of $25,000.
Calculate the Annual Income Needed:Monthly income required: $25,000Annual income required: $25,000 ×
12 = $300,000
Adjust for Tax:Since Jasper's income needs to be replaced at a pre-tax level with a tax rate of 40%, his gross income requirement is calculated as follows:
A close-up of a math Description automatically generated
Thus, Jasper needs a life insurance policy worth$12,500,000to replace his income, allowing his family to maintain their lifestyle with a 4% investment return. This calculation aligns with LLQP principles, ensuring that the income replacement fully addresses both current lifestyle needs and tax implications.
NEW QUESTION # 225
(Julia deposited capital into an annuity contract that will start payments in three years and continue for
10 years. She is the annuitant; her son Ethan is the beneficiary.
What type of annuity has Julia purchased?)
- A. An immediate accumulation term annuity with a 10-year guarantee.
- B. An accumulation 10-year term annuity.
- C. A deferred payout 10-year term annuity.
- D. An immediate payout term annuity with no guarantee.
Answer: C
Explanation:
Adeferred payout term annuityinvolves depositing funds now with payments starting after a deferment period (in Julia's case, 3 years) and continuing for a set term (10 years).
Exact Extract:
"A deferred payout annuity begins income payments after a specified deferment period. If a fixed period is selected, it is known as a term annuity." (Reference:Segfunds-E313-2020-12-7ED, Chapter 3.2.1.1 Payout Annuity)
NEW QUESTION # 226
Sergei meets with his insurance agent Nikita to purchase a $50,000 critical illness policy. Nikita explains that to apply for the policy Sergei would have to answer a series of personal questions about his finances, health, and lifestyle. Sergei is uncomfortable giving Nikita such detailed personal information. Nikita reassures Sergei by telling him that the insurer must follow stringent rules about how they can collect and handle this information. Which organization legislates privacy statutes pertaining to insurance companies?
- A. Criminal Code
- B. Human rights legislation
- C. Personal Information Protection and Electronic Documents Act (PIPEDA)
- D. Privacy Act
Answer: C
Explanation:
PIPEDA governs how private sector organizations, including insurance companies, collect, use, and disclose personal information in Canada. This Act mandates that insurers adhere to strict guidelines to ensure the protection of client information. Nikita is correct in assuring Sergei that his personal information is protected by privacy legislation, as PIPEDA sets out these obligations for private sector companies handling personal data.
NEW QUESTION # 227
Angela works in a biomedical research lab where she has been assigned to discover possible antidotes to the anthrax virus. While the discovery process of testing possible antidotes would expose her to the deadly virus, she is excited about the assignment.
Knowing that anthrax can be contracted through infected food, air, or contact with skin, what risk management strategy would Angela employ by wearing protective gear over her mouth and skin?
- A. Risk transfer
- B. Risk avoidance
- C. Risk reduction
- D. Risk retention
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Angela is taking steps to lessen the likelihood or severity of a potential loss. In insurance, this is termedrisk reduction, which involves implementing measures to reduce the frequency or severity of potential losses. By wearing protective gear, Angela is not avoiding the risk entirely but is actively minimizing it.
Reference: Insurance Study Guides Chinese.pdf, Risk Management Concepts - Risk Reduction
NEW QUESTION # 228
Josephine visits her dentist in downtown Victoria, BC, to have a cavity filled. The procedure costs her $550 but the maximum fee for a standard filling, according to the provincial dental schedule, is $400. Josephine works for a company that offers employees group dental coverage with a yearly maximum of $1,000 and an
80% co-insurance factor.
How much will Josephine receive from the insurer for her procedure?
- A. $320
- B. $440
- C. $400
- D. $0
Answer: A
Explanation:
Josephine's group dental plan pays a percentage (80%) of theprovincial dental schedulefee, not the actual cost.
For her filling, the schedule maximum is $400. Therefore, the insurer will cover 80% of $400, which amounts to $320. Although the procedure costs her $550, her coverage only applies to the schedule rate, meaning she will receive $320 from the insurer, while she covers the remainder out of pocket.
NEW QUESTION # 229
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