Life Test Practice Questions by Topic

Curriculum component 1 (35% of the Life exam): the client's family, income, debts and goals; income-replacement and capital-needs calculations; existing individual and group coverage; Canada Pension Plan death and survivor benefits; inflation and investment-return assumptions.

Curriculum component 1: the deemed disposition at death and the spousal rollover under the Income Tax Act, RRSP and RRIF balances at death, probate and final expenses, and the business uses of life insurance: key person cover, buy-sell agreements, share redemption and the capital dividend account.

Curriculum component 2 (30%): level, decreasing and increasing term; renewable and convertible term; whole life, term to 100, participating policies and dividend options; cash values and non-forfeiture options.

Curriculum component 2: universal life cost-of-insurance options (YRT and level), death benefit options, investment accounts, withdrawals and loans; supplementary benefits and riders; group life insurance and conversion rights.

Curriculum component 3 (25%): underwriting factors and ratings, the application and first premium, temporary insurance, delivery and the 10-day rescission right, contestability, misstatement of age, suicide clause, grace period and reinstatement.

Curriculum components 3 and 4: adjusted cost basis, policy gains on surrender, withdrawal and loans, exempt policies, transfers of ownership; policy changes, replacements, lapse and reinstatement, and the claims process.