LLQP Life Insurance · Component 1.2 · 35% of the exam
Which benefit is most likely to be lost by a family when the insured dies, and should therefore be counted in the needs analysis?
- The deceased's group health and dental coverage for the family
- BThe children's RESP, which is forfeited to the government if the subscriber dies before the children attend school
- CThe survivor's own CPP contributions, which are cancelled when the survivor begins to receive a survivor's pension
- DThe family's TFSA balances, which must be withdrawn and taxed when one of the spouses dies
Correct answer: A) The deceased's group health and dental coverage for the family
Group extended health and dental coverage usually ends with the member's death (sometimes after a short extension), so the family must replace it at their own cost. The curriculum lists benefits lost upon death — group health, disability coverage, employer pension income — as part of assessing existing coverage.
Why the other options are wrong
- BAn RESP continues; the death of a subscriber does not forfeit it.
- CThe survivor's own CPP contributions are unaffected by the death.
- DTFSA balances belong to the survivor or pass to a successor holder.
Exam tip
List the benefits that stop at death — family health and dental, disability coverage, employer pension income — and cost their replacement.
Common mistake
Forgetting the family's group health coverage disappears with the member.
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.