LLQP Segregated Funds & Annuities · Component 1.2 · 35% of the exam
A client asks whether CPP survivor benefits will support her spouse. The agent should explain:
- AThe survivor receives double the deceased's pension for the first year, then the regular amount
- BThere are no survivor benefits, since CPP is a personal pension that ends at the contributor's death
- CThey replace the deceased's full pension, so the household income is unchanged
- A modest survivor's pension subject to a combined maximum, plus a lump-sum death benefit
Correct answer: D) A modest survivor's pension subject to a combined maximum, plus a lump-sum death benefit
Government survivor benefits are limited. The combined maximum means a surviving spouse with their own full CPP may receive little extra.
Why the other options are wrong
- ACombined benefits are capped; nothing is doubled.
- BCPP survivor benefits exist, though they are modest and capped.
- CThe survivor's pension is a fraction, not a full replacement.
Exam tip
CPP survivor: partial, capped when combined with own CPP.
Common mistake
Assuming a surviving spouse keeps the deceased's full CPP.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.