LLQP Exam Dumps : Life License Qualification Program (LLQP)

In this scenario, Rowan, an employee of a construction company, suffers an injury while on the job. Since the injury occurred in the workplace, he would be eligible for benefits under Workers' Compensation. Workers' Compensation is designed to cover employees who suffer work-related injuries or illnesses, providing them with benefits that include coverage for medical expenses and income replacement during their period of disability​.

As the accident happened while Rowan was performing work duties, Workers' Compensation will likely cover his wage loss for the duration he is unable to work due to the injury. Employment Insurance (EI) would not be applicable here, as EI sickness benefits are intended for non-work-related illnesses or injuries. The Canada Pension Plan (CPP) also would not apply, as it provides long-term disability benefits primarily for severe and prolonged disabilities that prevent individualsfrom working in any capacity. Therefore, option D is the correct answer, as Workers' Compensation is specifically designed for cases like Rowan’s​.

Joseph’s diamond necklace collection is classified as aninvestment assetdue to its value and potential for appreciation over time. Investment assets are non-liquid assets that hold value, often with the potential to increase, and are usually part of an estate for wealth preservation or transfer. Liquid assets are easily convertible to cash, which does not apply here. Fixed assets typically refer to property or equipment used for business purposes. Thus,Option Baccurately describes the nature of his jewelry collection​​.

This question is a direct application of the time value of money concept—specifically present value (PV)—as taught in the LLQP Segregated Funds and Annuities material. Present value “works backwards from a future date” and answers the question: how much is needed now to achieve a future savings goal. The LLQP text provides the formula:

PV = FV ÷ (1 + interest rate)ⁿ

Here, Davy’s future goal is FV = $200,000, the annual return is 3% (0.03), and the time horizon is n = 10 years. Substituting into the LLQP formula:

PV = 200,000 ÷ (1.03)¹⁰

(1.03)¹⁰ ≈ 1.343916, so:

PV ≈ 200,000 ÷ 1.343916 ≈ $148,818.9, which rounds to $148,819.

Therefore, if Davy has at least $148,819 in his RRSP today and earns an average of 3% per year for the next 10 years with no additional contributions, he should reach approximately $200,000 by age 65.

This aligns exactly with the LLQP explanation that PV calculations are used “to help a person determine how much needs to be saved today to yield a specified pension at a future date.”