LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
A client widowed three weeks ago asks the agent to invest the insurance proceeds immediately in something aggressive. The agent should:
- Arecommend an immediate annuity so that the decision is made once and never revisited
- Binvest as instructed, since the client has given a clear direction about her own money
- place the proceeds in a short-term holding and revisit the decision once she has had time
- Drefuse all contact for a year, since grieving clients cannot give valid instructions at all
Correct answer: C) place the proceeds in a short-term holding and revisit the decision once she has had time
Major decisions made in the first weeks of bereavement are often regretted. Parking the money safely preserves every option, gives the client time and protects her from committing to a structure that does not match her settled needs.
Why the other options are wrong
- AAn irrevocable annuity is the worst choice while circumstances remain unsettled.
- BFollowing an instruction given under acute stress is not the same as giving advice.
- DRefusing contact abandons a client who needs support and information.
Exam tip
After a bereavement, protect optionality first and decide the structure later.
Common mistake
Treating an urgent instruction from a grieving client as a settled objective.
What this tests
CISRO competency component 3.1 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 3
- A client's spouse must sign for:
- When the insurer requests additional information after the application (for example, source of wealth for a large deposit), the agent should:
- The implementation of a recommendation involving a switch from one seg fund to another within a contract requires:
- A client wishes to designate a charity as beneficiary of a segregated fund. Implementation should:
- For a deferred annuity implemented for a client, the agent should confirm:
- The agent's record of the implementation should be retained:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.