LLQP Exam Dumps : Life License Qualification Program (LLQP)

Agroup TFSAallows employees to withdraw fundsat any time without triggering taxes or penalties, meeting Germaine’s requirement perfectly.

Exact Extract:

"TFSAs allow contributions with after-tax dollars and withdrawals at any time without tax penalties, making them ideal for flexible saving plans."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.3.11.2 Group Plans​)

Comprehensive and Detailed Explanation From Exact Extract:

To insure someone’s life, there must beinsurable interestat the time the policy is initiated. Health Inc. has abusiness-related financial interestin Leslie, their key employee, whichqualifies under Canadian insurance law. The LLQP material confirms that companies may insure key personnel for loss-of-income purposes with insurable interest clearly established.

Sasha’s plan allows him to choose his own investments, and the company is required to contribute, while his own contributions are optional. This structure is indicative of a DefinedContribution Pension Plan (DCPP). In a DCPP, the employer contributes a fixed amount to the employee’s retirement plan, and employees often have control over how their funds are invested. Employee contributions are typically voluntary, as outlined by LLQP guidelines on pension plans​.

Options B, C, and D do not match because Defined Benefit Plans do not provide investment choice, DPSPs usually have discretionary employer contributions, and group RRSPs are not pension plans and typically involve mandatory employee contributions.