LLQP Segregated Funds & Annuities · Component 1.2 · 35% of the exam
A Registered Disability Savings Plan (RDSP) is available to:
- A person eligible for the disability tax credit, with grants and bonds by family income
- BRetirees who become disabled after 65 and need to supplement their pension income
- CAnyone who can show a medical condition, since eligibility is decided by the plan issuer
- DStudents with disabilities, in the same way as an RESP is available to any student
Correct answer: A) A person eligible for the disability tax credit, with grants and bonds by family income
RDSPs are a specialized plan with generous government matching for eligible beneficiaries. The agent should identify eligibility in the family.
Why the other options are wrong
- BAge limits and DTC eligibility apply; it is not a retiree plan.
- CEligibility requires the disability tax credit, not the issuer's judgment.
- DEducation is RESP territory; the RDSP is a long-term savings plan.
Exam tip
RDSP: DTC-eligible beneficiary, grants and bonds, deferred growth.
Common mistake
Overlooking RDSP eligibility for a client's disabled family member.
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.