LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
When recommending an annuity to a married client, the agent should generally propose:
- ANo guarantee period, since the higher income is worth more to the couple than any residual payment
- BA single-life annuity on the client, since it produces the highest income and the spouse has the will
- CA term-certain annuity of 5 years, since it keeps the couple's options open while rates improve
- A joint-and-survivor form or a guarantee period, unless the spouse is provided for and both accept single-life
Correct answer: D) A joint-and-survivor form or a guarantee period, unless the spouse is provided for and both accept single-life
Survivor protection is the default consideration for couples; pension-source funds require it unless waived.
Why the other options are wrong
- AAn annuity with no guarantee period exposes the estate to early death.
- BA single-life annuity leaves the survivor without income.
- CToo short for lifetime needs.
Exam tip
Married client → joint-and-survivor or guarantee period.
Common mistake
Maximizing income with a single-life annuity without the spouse's informed agreement.
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.