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Life Insurance, BC Canada( HLLQP STUDY) Questions with
Detailed Verified Answers
3 phrases of Against Permanent Loss of income( Income earner dies) Ans: ✓ ✓ ✓ Readjustment
period, Dependency Period, Survivor life income needs
Capital retention approach Ans: ✓ ✓ ✓ Today's value of income needs + cash needs = insurance
needs
Two common method for calculate life insurance needs Ans: ✓ ✓ ✓ Capitalization of income
approach(life- value approach) and Capital retention approach
Capitalization of income approach(life- value approach) Ans: ✓ ✓ ✓ Annual Income / interest rate
= life value (how much one's earning worth in today's value ).
Ex, 30,.05= 600,000
If I put 600,000 in a 5% investment, I have 30000 per year
Types of Estate planning needs Ans: ✓ ✓ ✓ Principal Resident,Cottage ,Investment( i)interest
ii)Dividends iii) capital gain
3 factors that contribute to the coverage needed for Against Temporary Loss of Income Ans: ✓ ✓ ✓
1.Earned income (active income), 2.Other source of disability benefits, 3.Tax bracket.
Note: the benefit payment amount is ""monthly"" ›Be care full when reading the question -Annual
income or monthly income?
3 sections of Completing Application Form Ans: ✓ ✓ ✓ 1. Personal information of the insured
2. Medical Information of the life insured
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3.Product details
Poor estate planning may not be able Ans: ✓ ✓ ✓ -to pay off the Final income tax with enough
cash and the estate is forced to sell some important assets
-to provide enough for the family
-To distribute his estate fairly to each heir
Capital gain Ans: ✓ ✓ ✓ Taxable capital gain = （Fair market value - ACB )/2
Only half the gain is taxed
Some may subject to life time capital gain exemption (800,000+) ›Qualified small business
corporation (QSBC) ›Qualified farm and fishing properties
Protections that Clients have Ans: ✓ ✓ ✓ 1. Laws
-Contract Law, Criminal law, tort law
-Insurance companies act
-Office of the Superintendent of Financial Institutions
-E &O provide compensation to clients' rightful claim
2.The insurance ombudsman
-4 steps before going to the court
3.Arbitration
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-Both parties agree to accept the solution constructed by a third party organization. -The solution is
binding
4. Assuris
-Help transfer policies from an insolvent company to a solvent company
-Guaranteed the benefit, with a limit
Assuris guaranteed Ans: ✓ ✓ ✓ ›Death benefits -Up to 200,000 or 85% of the original amount but
not less than 200,000
›CSV/account value -Up to 60000 or 85% of the original amount but not less than 60000
›Annuities, disability income, long-term-care -Up to 2000 or 85% of original amount whichever is
greater
›CI, travel insurance, and other health plan -Up to $60,000 or 85% of the original amount
whichever is greater
›Non-registered accumulation policies -100% of the accumulated value up to 100,000
›Segregated funds -Coverage up to 60000, 85% coverage on the"" guaranteed"" amounts
For a contract to be effective there are 5 conditions to meet Ans: ✓ ✓ ✓ 1.-Valid offer and
acceptance
2.-Legally competent parties
3. -Consideration ( a price for exchange ) ›Present and the future
4.-Genuine intention to create legal relations ›DUI, misrepresentation,
© Get it right 2025 Getaway - Stuvia US All rights reserved
Life Insurance, BC Canada( HLLQP STUDY) Questions with
Detailed Verified Answers
3 phrases of Against Permanent Loss of income( Income earner dies) Ans: ✓ ✓ ✓ Readjustment
period, Dependency Period, Survivor life income needs
Capital retention approach Ans: ✓ ✓ ✓ Today's value of income needs + cash needs = insurance
needs
Two common method for calculate life insurance needs Ans: ✓ ✓ ✓ Capitalization of income
approach(life- value approach) and Capital retention approach
Capitalization of income approach(life- value approach) Ans: ✓ ✓ ✓ Annual Income / interest rate
= life value (how much one's earning worth in today's value ).
Ex, 30,.05= 600,000
If I put 600,000 in a 5% investment, I have 30000 per year
Types of Estate planning needs Ans: ✓ ✓ ✓ Principal Resident,Cottage ,Investment( i)interest
ii)Dividends iii) capital gain
3 factors that contribute to the coverage needed for Against Temporary Loss of Income Ans: ✓ ✓ ✓
1.Earned income (active income), 2.Other source of disability benefits, 3.Tax bracket.
Note: the benefit payment amount is ""monthly"" ›Be care full when reading the question -Annual
income or monthly income?
3 sections of Completing Application Form Ans: ✓ ✓ ✓ 1. Personal information of the insured
2. Medical Information of the life insured
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,Click here for more: Scholars nexus
3.Product details
Poor estate planning may not be able Ans: ✓ ✓ ✓ -to pay off the Final income tax with enough
cash and the estate is forced to sell some important assets
-to provide enough for the family
-To distribute his estate fairly to each heir
Capital gain Ans: ✓ ✓ ✓ Taxable capital gain = （Fair market value - ACB )/2
Only half the gain is taxed
Some may subject to life time capital gain exemption (800,000+) ›Qualified small business
corporation (QSBC) ›Qualified farm and fishing properties
Protections that Clients have Ans: ✓ ✓ ✓ 1. Laws
-Contract Law, Criminal law, tort law
-Insurance companies act
-Office of the Superintendent of Financial Institutions
-E &O provide compensation to clients' rightful claim
2.The insurance ombudsman
-4 steps before going to the court
3.Arbitration
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
-Both parties agree to accept the solution constructed by a third party organization. -The solution is
binding
4. Assuris
-Help transfer policies from an insolvent company to a solvent company
-Guaranteed the benefit, with a limit
Assuris guaranteed Ans: ✓ ✓ ✓ ›Death benefits -Up to 200,000 or 85% of the original amount but
not less than 200,000
›CSV/account value -Up to 60000 or 85% of the original amount but not less than 60000
›Annuities, disability income, long-term-care -Up to 2000 or 85% of original amount whichever is
greater
›CI, travel insurance, and other health plan -Up to $60,000 or 85% of the original amount
whichever is greater
›Non-registered accumulation policies -100% of the accumulated value up to 100,000
›Segregated funds -Coverage up to 60000, 85% coverage on the"" guaranteed"" amounts
For a contract to be effective there are 5 conditions to meet Ans: ✓ ✓ ✓ 1.-Valid offer and
acceptance
2.-Legally competent parties
3. -Consideration ( a price for exchange ) ›Present and the future
4.-Genuine intention to create legal relations ›DUI, misrepresentation,
© Get it right 2025 Getaway - Stuvia US All rights reserved
