LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
A client with a spouse 8 years younger is opening a RRIF. The recommendation should include:
- ANo age election, since the minimum withdrawal is fixed by law and cannot be varied by the client
- BUsing the client's own age for minimums, since the spouse's age is relevant only if the spouse is the owner
- CCashing out the RRSP instead of opening a RRIF, since the younger spouse can then reinvest the proceeds
- Electing the younger spouse's age for minimums, and naming the spouse successor annuitant
Correct answer: D) Electing the younger spouse's age for minimums, and naming the spouse successor annuitant
The younger-spouse election must be made at RRIF setup and cannot be changed later. It is a recommendation detail with lasting effect.
Why the other options are wrong
- AMaking no election forfeits the lower minimum a younger spouse's age allows.
- BUsing the client's own age forces higher minimums.
- CCashing out taxes the whole balance at once.
Exam tip
RRIF setup: elect the younger spouse's age; name successor annuitant.
Common mistake
Forgetting the election at setup — it cannot be added later.
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.