LLQP Life Insurance · Component 1.2 · 35% of the exam
A client's father died recently and the client wants to know whether the CPP death benefit will cover the funeral. The agent should explain that:
- The CPP death benefit is a modest one-time payment to the estate that rarely covers a full funeral
- BCPP pays nothing at death, since its benefits are limited to retirement and disability pensions for contributors
- CCPP pays all funeral costs on submission of the funeral director's invoice, up to a generous maximum
- DThe death benefit is paid monthly for life to the estate's representative, in place of the retirement pension
Correct answer: A) The CPP death benefit is a modest one-time payment to the estate that rarely covers a full funeral
The CPP death benefit is a single lump sum paid to the estate (or the person who paid the funeral) and is small relative to typical funeral costs. It is a resource to count, not a substitute for final-expense coverage.
Why the other options are wrong
- BCPP does pay a death benefit; it is just modest.
- CCPP's death benefit is a small fixed lump sum, not full funeral reimbursement.
- DThe death benefit is a one-time payment, not a monthly pension.
Exam tip
Count the CPP death benefit as a small offset against final expenses, not as final-expense coverage.
Common mistake
Telling a client CPP will 'take care of the funeral'.
What this tests
CISRO competency component 1.2 — 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.