LLQP Life Insurance · Component 1.1 · 35% of the exam
A married client asks whether his spouse will receive anything from the Canada Pension Plan if he dies. The agent's accurate answer is:
- AOnly if the client dies after age 65, since CPP survivor benefits are an extension of the retirement pension
- BNothing at all, since CPP pays only retirement pensions to contributors who live to claim them
- CA pension equal to the client's full salary, so the spouse's standard of living is maintained
- A one-time death benefit and, if eligible, a monthly survivor's pension, with children's benefits for dependants
Correct answer: D) A one-time death benefit and, if eligible, a monthly survivor's pension, with children's benefits for dependants
CPP provides a lump-sum death benefit to the estate, a survivor's pension to the spouse or common-law partner based on the contributor's record and the survivor's age, and children's benefits. These are resources in the needs analysis, but they are modest relative to a family's income.
Why the other options are wrong
- ACPP survivor benefits do not depend on the contributor dying after 65.
- BCPP provides survivor, death and children's benefits.
- CCPP survivor benefits are modest and never equal full salary.
Exam tip
CPP survivor benefits are a resource in the analysis, but they are small relative to household income — never let a client rely on them alone.
Common mistake
Overstating what CPP pays a surviving spouse.
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.