IFSE Institute LLQP Exam With Confidence Using Practice Dumps

Comprehensive and Detailed Explanation From Exact Extract:

Capital gains = FMV $400,000 – ACB $200,000 = $200,000.

Taxable portion = 50% × $200,000 = $100,000.

At a 50% tax rate, the total tax liability = $50,000.

However, life insurance to cover the taxable gain is often chosen at the full $100,000 to ensure coverage in case of future value growth or policy structure flexibility.

Emery is a non-income earning individual, as she is a stay-at-home mother and volunteer. Traditional disability insurance policies, likeGuaranteed RenewableorCancellable policies, typically require proof of income and are generally issued to individuals who can demonstrateearned income. However,Non-traditional disability insurance policiesare often designed for individuals without a conventional source of earned income, such as homemakers, who may still wish to secure coverage against the potential loss of the ability to perform daily tasks due to disability​.

Non-traditional policies may offer benefits that help cover the costs associated with hiring help or obtaining services that Emery could no longer provide if disabled. These types of policies acknowledge that a disability could impact Emery’s ability to care for her family, even though she does not earn a regular income. Therefore, option C is the best answer, as it aligns with the LLQP guidelines that recognize the suitability of non-traditional disability policies for individuals like Emery who have significant responsibilities but no formal income​.

In Quebec, disability insurance benefits are generally protected from seizure by creditors. This protection is designed to ensure that disabled individuals retain access to essential income for their well-being during their period of disability. Since Paola’s benefits are designated as disability income, they are exempt from garnishment​​.

This aligns with Quebec's laws on disability and insurance benefits, which prioritize financial protection for individuals facing health-related work absences. Thus, her benefits remain protected, regardless of her tax status or existing debts​.