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IFSE Institute LLQP Exam Questions
Life License Qualification Program (LLQP) (Page 6 )

Updated On: 27-Feb-2026
Page 6 of 61
PDF with 298 Questions

Johann owns a $250,000 whole life insurance policy. The policy has a cash surrender value (CSV) of

$55,000 and an adjusted cost basis (ACB) of $30,000. Johann would like to cancel his policy and use the cash surrender value to fund a new business. If his marginal tax rate is 40%, how much will he have left after cancelling his policy?

  1. $30,000
  2. $33,000
  3. $45,000
  4. $55,000

Answer(s): B



Akeno is a 65-year-old retired accountant. He is divorced and has a 40-year-old son who is financially independent. Thanks to years of diligent savings, Akeno now enjoys a comfortable retirement. In addition to his pension income, he has over $300,000 invested in shares in his non-registered account. He lives in a mortgage-free home valued at $700,000 and owns a cottage valued at $500,000. The mortgage on the cottage is $100,000. Akeno purchased the homes 30 years ago when housing prices were low. It is important to him to donate $100,000 to the Alzheimer's Association when he dies.
What is the GREATEST financial risk that would arise in the event of Akeno's death?

  1. Loss of income.
  2. Debt repayment.
  3. Income tax.
  4. Estate creation.

Answer(s): C



Bethenny meets with Harrison, an insurance agent, to review her life insurance needs. Bethenny is a single mother of a 3-year-old daughter named Emma. Bethenny's main concern is that Emma istaken care of financially if Bethenny were to die prematurely. Emma's father Steve suffers from chronic alcoholism and is homeless. He has not been present in Emma's day-to-day life. After careful analysis, Harrison suggests that Bethenny purchase a $250,000 20-year term insurance policy. Given Bethenny's situation, who should she name as a beneficiary on her policy?

  1. Her estate.
  2. Emma.
  3. A trustee.
  4. Steve.

Answer(s): C



Anita is a 50-year-old woman who is thinking of purchasing a $150,000 permanent life insurance policy to pay for the capital gains tax that will be payable on her country home upon her death. She had purchased the home twelve years ago and wants to bequeath the property to her niece when she dies.
Which of the following features about a permanent insurance policy is TRUE?

  1. The coverage ends when Anita turns 100.
  2. The premiums will remain level for the duration of the contract.
  3. The policy cannot be cancelled by Anita.
  4. Anita must contact the insurer if there is a change in the insurability.

Answer(s): B



Francis owns a $250,000 insurance policy with an accidental death and dismemberment (AD&D) rider. Francis calls his insurance agent Andrew to inform him that he permanently lost the use of his right hand. He explains to Andrew that his brother shot him when he broke into his brother's house to recover a gold watch that was rightfully his. Francis wants to know how much he will receive from his AD&D rider.

  1. Francis will receive a benefit of $165,000.
  2. Francis will receive a benefit of $187,500.
  3. Francis will receive a benefit of $250,000.
  4. Francis will not receive any benefit.

Answer(s): D






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