LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
The maturity date of a segregated fund guarantee should be set:
- AWithout regard to the client's plans, since the guarantee is a contract term set by the insurer
- BAs late as possible in every case, since a longer term gives the fund more time to grow
- CAt age 100 for every client, since that is the latest date the insurer permits and gives the most protection
- To coincide with or precede the client's need date, within the contract's minimum term
Correct answer: D) To coincide with or precede the client's need date, within the contract's minimum term
A guarantee that matures after the need date offers no protection when the money is withdrawn. Timing is a recommendation detail with real consequences.
Why the other options are wrong
- AIt must be deliberate and tied to the client's need.
- BLate maturity may miss the need date.
- COnly if the client's need is that far out.
Exam tip
Maturity date ≈ need date.
Common mistake
Accepting the default maturity date without checking the client's plans.
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.