LLQP Life Insurance · Component 1.1 · 35% of the exam
A client intends to retire to another country in a few years. The agent should establish:
- Aonly whether the destination country permits foreign life insurance policies to be held
- Bwhether the insurer will convert the policy into the destination country's currency
- Cnothing, because retirement plans are too distant to affect today's recommendation
- how departure would affect his benefits, tax position and the currency his family would need
Correct answer: D) how departure would affect his benefits, tax position and the currency his family would need
Leaving Canada affects eligibility for government benefits, the taxation of registered plans and the currency in which survivors will spend. A stated plan should be recorded and revisited as the date approaches.
Why the other options are wrong
- AHolding an existing policy is rarely the constraint that matters most.
- BPolicies are denominated as issued and are not converted on request.
- CA planned departure affects the design of coverage bought today.
Exam tip
A planned emigration changes benefits, tax and the currency of the need.
Common mistake
Designing long-term coverage without asking where the client intends to live.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.