LLQP Life Insurance · Component 1.1 · 35% of the exam
A widowed client aged 62 with a low income asks about the Old Age Security Allowance for the Survivor. Which statement is correct?
- It is an income-tested benefit for low-income survivors aged 60 to 64 who have not remarried, ending at 65
- BIt is paid for life once granted, since a survivor's circumstances are not expected to improve with age
- CIt is available to any widow or widower regardless of income, since it is a recognition of the loss rather than a need
- DIt replaces CPP survivor benefits, so a survivor who receives the Allowance gives up the CPP pension
Correct answer: A) It is an income-tested benefit for low-income survivors aged 60 to 64 who have not remarried, ending at 65
The Allowance for the Survivor bridges low-income surviving spouses from 60 until OAS eligibility at 65. It is income-tested and stops on remarriage. It sits alongside, not instead of, CPP survivor benefits, and the agent should count it only where the client is likely to qualify.
Why the other options are wrong
- BIt ends at 65 when OAS eligibility begins.
- CThe Allowance for the Survivor is income-tested and age-limited.
- DIt is separate from CPP survivor benefits and does not replace them.
Exam tip
OAS Allowance for the Survivor: ages 60–64, low income, not remarried, ends at 65. Count it only where the client would qualify.
Common mistake
Treating the Allowance for the Survivor as a lifelong benefit.
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.