LLQP Seg Funds study plan

Define segregated fund contract, policyholder, annuitant, beneficiary and insurer, and contrast a seg fund contract with a mutual fund, a GIC and a daily-interest account on the three axes of guarantee, creditor exposure and probate.

Distinguish the maturity guarantee from the death benefit guarantee, stating the standard 75% maturity and 100% death benefit levels for newer contracts and the 100%/100% levels found on older contracts, plus the maximum age at which guarantees stop applying.

Compare guaranteed minimum death benefit, guaranteed minimum maturity benefit and guaranteed minimum withdrawal benefit riders, and state which risk each one transfers to the insurer.

Compute guarantee values by hand for three scenarios that include an initial deposit, a top-up and a partial withdrawal, showing how proportional reductions lower the guaranteed amount.

Classify ten short fact patterns as either a guaranteed event or a non-guaranteed event, and justify each classification in one sentence.

Trace how an automatic reset and an optional reset each change the guarantee base and the guaranteed amount, and identify two situations in which electing a reset is disadvantageous to the client.

Differentiate revocable from irrevocable beneficiary designations and preferred from ordinary beneficiary designations, then state the effect of each on who receives the death benefit and whether probate applies.

Break down the cost structure of a seg fund contract by separating the management expense ratio from the insurance or guarantee fee, and calculate the net-of-fee return on a stated gross return over a five-year hold.

Explain the conditions under which creditor protection is preserved or lost, including the role of irrevocable beneficiary designations and of registered plan registration.

Describe the contract provisions covering cooling-off rights, partial withdrawals, minimum balance rules and maturity or annuitization options.

Explain the accrual taxation model that applies to non-registered seg fund contracts, showing why income and realized gains are taxed to the holder annually rather than only on redemption.

Distinguish the tax character of interest, eligible dividends, foreign income and realized capital gains inside a seg fund contract, and state how each is treated on the holder's return.

Compute adjusted cost base per unit after a purchase, a reinvested distribution and a partial redemption, then calculate the resulting capital gain or loss.

Explain the deemed disposition at death of a seg fund contract holder, and identify when a tax-deferred rollover to a spouse or a dependent child is available.

Rank four exit routes - partial redemption, full surrender, death benefit payout and transfer to a registered plan - by their immediate tax consequence, with a one-line justification for each ranking.

Compare the tax treatment of seg fund contracts held inside an RRSP, a RRIF, a TFSA and a non-registered account, and state who bears the tax in each case.

Explain the tax consequences of transferring a non-registered seg fund contract between owners, including the spouse or common-law partner rollover and its attribution implications.

Identify the situations in which a capital loss inside a seg fund contract is denied or must be adjusted, and describe how superficial-loss-style rules and registered-plan holdings affect the outcome.

Complete 20 mixed tax and guarantee questions under timed conditions and log every error by cause rather than by topic.

Map the regulatory structure that governs seg fund sales, naming the role of provincial insurance regulators, the licensing regime and the file-and-approve requirements for contract and information folder wording.

Explain the disclosure obligations owed to a client before purchase, including the information folder and fund facts documents, the right to a cooling-off period and the content of a conflict of interest disclosure.

Distinguish know-your-product obligations from know-your-client obligations and give two examples of a breach of each.

Summarize the fair treatment of customers expectations across the product lifecycle, from design through complaint handling and misconduct reporting.

Identify the record-keeping, privacy and anti-money-laundering requirements that apply to a seg fund transaction file, and list the documents that must be retained.

Build a know-your-client profile for three contrasting clients, capturing financial situation, objectives, time horizon, risk tolerance, knowledge and any liquidity needs.

Assess how a seg fund guarantee changes the risk profile an appropriate client can accept, and justify when a guaranteed product is unsuitable despite low stated risk tolerance.

Compare fund categories on volatility, fee level and underlying asset mix, and match each of the three client profiles to a specific fund category with a written rationale.

Analyze the impact of a leveraged or borrowing-to-invest recommendation on suitability, and state the additional disclosure and documentation it requires.

Evaluate a replacement scenario to determine whether the new contract's guarantees and costs genuinely improve the client's position.

Sequence the seg fund sales process from initial contact through needs analysis, recommendation, application, delivery of the information folder and confirmation, naming the document produced at each step.

Apply provincial replacement rules by completing a replacement disclosure form for a hypothetical switch from an existing seg fund contract, and identify the reasonable steps required before proceeding.

Draft responses to four common client objections about guarantees, fees, lock-in periods and market risk, keeping each response factual and free of performance promises.

Design an ongoing service schedule that specifies review frequency, trigger events such as a reset election or beneficiary change, and the documentation produced at each review.

Distinguish the advisor's obligations when a client's circumstances change materially, including the duty to reassess suitability rather than simply continue the existing contract.

Complete two full-length mixed practice examinations under timed conditions and record the score achieved on each of the five domains separately.

Rank the five domains by demonstrated weakness and rebuild the two weakest areas from original notes rather than from worked solutions.

Re-derive from memory the guarantee calculations, ACB calculations and disclosure sequence that produced errors in earlier weeks, without referring to notes.

State in writing the three most common traps you personally fall into on seg fund questions and the check you will apply to avoid each one.