IFSE Institute LLQP Exam Questions - Navigate Your Path to Success

The IFSE Institute Life License Qualification Program (LLQP) (LLQP) exam is a good choice for Life Insurance Agents Financial Advisors Insurance Brokers and if the candidate manages to pass IFSE Institute Life License Qualification Program (LLQP) exam, he/she will earn IFSE Institute Life License Qualification Program Certification. Below are some essential facts for IFSE Institute LLQP exam candidates:

In actual IFSE Institute Life License Qualification Program (LLQP) (LLQP) exam, a candidate can expect 30 Questions and the officially allowed time is expected to be around 75 minutes per module Minutes.
TrendyCerts offers 150 Questions that are based on actual IFSE Institute LLQP syllabus.
Our IFSE Institute LLQP Exam Practice Questions were last updated on: Mar 06, 2025

Sample Questions for IFSE Institute LLQP Exam Preparation

Question 1

Genevieve and Martin, a couple in their 40s, meet with Melissa, their insurance agent, to help them plan for their retirement. Melissa tells them that they would benefit from opening a spousal registered retirement savings plan (RRSP) given their financial situation and discrepancy in their incomes. The couple would like to know the benefits of opening a spousal RRSP.

AA spousal RRSP is a way to move income from one spouse, who has a higher tax rate, to the other, who has a lower tax rate, during retirement.

BContributions to a spousal plan are based on the contribution room of the recipient and reduce his or her RRSP contribution room.

CContributions to a spousal plan can be made until the end of the year in which the older spouse turns 71.

DHaving a spousal RRSP can extend the tax benefit of contributions past age 71 if the contributing spouse is younger.

Correct : A

A spousal RRSP is beneficial for couples with differing income levels as it allows for income splitting during retirement. This is advantageous because it enables the higher-income spouse to contribute to the RRSP of the lower-income spouse. When the funds are eventually withdrawn during retirement, they are taxed at the lower-income spouse's rate, potentially reducing the couple's overall tax burden. This aligns with the LLQP guideline on income splitting as a tax minimization strategy.

Option B is incorrect because the contributions to a spousal RRSP reduce the contribution room of the contributing spouse, not the recipient. Option C is technically accurate but does not directly address the primary advantage of a spousal RRSP in terms of tax planning, and Option D is correct regarding extending tax benefits but does not directly highlight the immediate benefit of income splitting for the couple.

Options Selected by Other Users:

Question 2

Kadiha invested $10,000 in a balanced fund 10 years ago, which she put into a non-registered account. At the time, her insurance agent sold her the fund with a 75% maturity and death benefit guarantee. Today, when the fund expires, the market value is $5,000.

How much will Kadiha receive, and how will her funds be treated for tax purposes?

A$7,500, tax free.

B$7,500, of which $2,500 will be taxed as capital gain.

C$7,500, of which $2,500 will be taxed as interest income.

D$7,500, of which $2,500 will be taxed as interest, dividend, and capital gain.

Correct : A

Kadiha's investment in a segregated fund with a 75% maturity guarantee means that upon maturity, she is guaranteed to receive 75% of her original investment, which would be $7,500 (75% of $10,000). The payment is considered part of the maturity guarantee under segregated fund contracts, and the difference paid out by the insurer to meet the guarantee ($2,500 in this case) is not subject to capital gains or interest income tax as it's part of the guaranteed benefit. According to LLQP guidelines, segregated funds with such guarantees only tax the difference as capital gains if the payout exceeds the original investment, which is not applicable here.