LLQP Seg Funds study guide
LLQP Seg Funds · Work through your exam, one topic at a time.
The LLQP Segregated Funds module is one component of Canada's Life Licence Qualification Program, the entry-level certification route for people seeking a licence to sell life insurance products. Segregated fund contracts sit at the intersection of insurance and investment: they are individual variable insurance contracts wrapped around underlying investment funds, sold by licensed life insurance agents, and commonly used for retirement savings, estate planning and guaranteed-return objectives. Candidates usually tackle this module after the core life insurance material, because it assumes familiarity with contract structure, beneficiary designations, policy taxation and client needs analysis. Content is organized around five themes: contract structure and guarantees; regulation and disclosure; taxation of the contract and its underlying funds; needs analysis, suitability and fund selection; and the sales process, including replacement and ongoing client service. The LLQP Seg Funds study guide has 5 sections and about 1,744 words.
01Segregated Fund Contracts and Guarantees
Segregated fund contracts are individual variable insurance contracts (IVICs). The contract holder owns the policy, the annuitant’s life determines the death benefit and maturity events, and the beneficiary receives proceeds.
264 words, about 1 min02Segregated Fund Regulation and Disclosure
Segregated fund regulation is split: OSFI supervises federal solvency, while provincial and territorial insurance regulators supervise market conduct, licensing, and sales practices. CCIR and CLHIA guidance shape disclosure and conduct.
250 words, about 1 min03Taxation of Segregated Fund Contracts
Taxation of segregated fund contracts depends on registration. In a non-registered contract, income is generally taxed annually to the contract holder on an accrual basis, similar to mutual funds: interest, dividends, and capital gains are allocated and reported even if not withdrawn.
249 words, about 1 min04Needs Analysis
Needs analysis for seg funds starts with know-your-client information: objectives, risk tolerance, time horizon, liquidity needs, income, tax position, estate goals, creditor concerns, existing insurance, and capacity for loss. The guarantee is a feature, not a substitute for suitability.
247 words, about 1 min05Suitability and Fund Selection
Suitability and fund selection connect the client’s KYC profile to the insurer’s know-your-product information. Review the fund’s mandate, asset mix, volatility, benchmark, sub-advisor, fees, and guarantee costs.
734 words, about 4 min