LLQP Life Insurance · Component 1.2 · 35% of the exam
Which statement about CPP survivor's pension is correct?
- AEvery surviving spouse receives the full amount of the contributor's retirement pension for the rest of their life
- The amount depends on the contributor's record and the survivor's age, with a combined maximum for survivors already on CPP
- CIt ends after five years, at which point the survivor is expected to have adjusted to the loss of the contributor's income
- DIt is paid only to widows, not widowers, since the program was designed to protect women who had not worked outside the home
Correct answer: B) The amount depends on the contributor's record and the survivor's age, with a combined maximum for survivors already on CPP
The survivor's pension is calculated from the deceased contributor's record and reduced for younger survivors; a survivor with their own CPP retirement pension receives a combined amount subject to a maximum. It does not simply pass the deceased's full pension to the survivor.
Why the other options are wrong
- AThe survivor's pension is a calculated portion, adjusted for the survivor's age.
- CThe survivor's pension does not end after a fixed number of years.
- DSurvivor's pensions are paid to surviving spouses of either sex.
Exam tip
CPP survivor's pension depends on the deceased's contributions and the survivor's age, and combines with the survivor's own CPP up to a maximum.
Common mistake
Assuming the survivor simply inherits the deceased's full CPP pension.
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.