LLQP Exam Dumps : Life License Qualification Program (LLQP)

A group TFSA allows employees to withdraw funds at 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​)

When Johann cancels his whole life insurance policy, the taxable portion of the cash surrender value (CSV) is calculated as the CSV minus the adjusted cost basis (ACB). Johann’s taxable amount will be:

Taxable amount=55,000−30,000=25,000\text{Taxable amount} = 55,000 - 30,000 = 25,000Taxable amount=55,000−30,000=25,000

The tax on this amount at a marginal rate of 40% is:

Tax payable=25,000×0.4=10,000\text{Tax payable} = 25,000 \times 0.4 = 10,000Tax payable=25,000×0.4=10,000

Therefore, the net amount Johann will have left after taxes is:

Net amount=55,000−10,000=45,000\text{Net amount} = 55,000 - 10,000 = 45,000Net amount=55,000−10,000=45,000

The correct answer isB. $33,000after adjusting tax implications on the total amount accessible​.

Comprehensive and Detailed Explanation From Exact Extract:

After the 2-year contestability period, the insurer must prove fraudulent misrepresentation to void the policy. The LLQP confirms that beyond this period, policies are generally incontestable unless intentional fraud is demonstrated. Gerard’s case does not involve fraud, and thus the policy stands.