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SEGREGATED FUNDS AND ANNUITIES EXAM VERSION 2
AND PRACTICE EXAM 2025/2026 NEWEST ACTUAL EXAM
WITH COMPLETE QUESTIONS AND VERIFIED ANSWERS
|ALREADY GRADED A+|
What is a Term Annuity-To-Age-18 (T-18)? - ANSWER-An annuity
for financially dependent children named as beneficiaries of their
RRSP/RRIF.
What is an Impaired Annuity? - ANSWER-A life annuity for an
annuitant with a shortened life expectancy due to a serious
disease.
What are the deposit requirements for an Immediate Annuity? -
ANSWER-An immediate annuity must be funded by a lump sum.
What is a LIRA? - ANSWER-A tax-advantaged account holding
funds 'locked-in' from a pension plan, which cannot be withdrawn
until retirement.
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What is a LIF? - ANSWER-A Canadian retirement income vehicle
allowing individuals to convert LIRA into a retirement income
stream, with regulated withdrawal limits.
What must a spouse acquire when transferring locked-in savings?
- ANSWER-A joint and last survivor life annuity.
When can annuity payments begin? - ANSWER-Payments cannot
begin until after the last deposit has been made.
What is the difference between Immediate and Deferred income?
- ANSWER-Immediate income starts on the next payment date,
while deferred income has an accumulation phase and a payout
phase.
What is a Level Income Annuity? - ANSWER-An annuity that pays
the same amount for its duration.
What is an Indexed Income Annuity? - ANSWER-An annuity that
pays interest based on a market index, addressing inflation risk.
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What is a Variable Income Annuity? - ANSWER-An immediate life
annuity that earns market-linked returns, mitigating interest and
inflation risks but introducing equity risk.
What happens if the annuitant dies during a Term Annuity? -
ANSWER-The beneficiary can choose from an installment refund,
cash refund, or capital protection guarantee.
What is a Life Annuity with no guarantee? - ANSWER-If the
annuitant dies after the first payment, no further payments are
made to a beneficiary.
What choices does a Life Annuity with a guarantee provide? -
ANSWER-It offers capital installment and cash refund choices.
How can interest rate risk in an annuity be managed? - ANSWER-
By using investment capital to buy a series of annuities instead of
a single one.
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How can an annuity's capital loss be managed? - ANSWER-By
adding a guarantee period and beneficiary to the contract.
What is a key restriction of payout annuities? - ANSWER-Payout
annuities do not permit withdrawals.
What happens to an annuity contract if a client has started
receiving payments? - ANSWER-The contract cannot be
terminated even if the client needs money.
What is an accumulation annuity? - ANSWER-An accumulation
annuity allows a withdrawal with a Market Value Adjustment
(MVA) charge.
Can an annuity funded by the transfer of LIRA or LIF be
surrendered? - ANSWER-No, it cannot be surrendered.
What happens when a term annuity is surrendered? - ANSWER-
Future annuity payments are taken in a lump sum.
SEGREGATED FUNDS AND ANNUITIES EXAM VERSION 2
AND PRACTICE EXAM 2025/2026 NEWEST ACTUAL EXAM
WITH COMPLETE QUESTIONS AND VERIFIED ANSWERS
|ALREADY GRADED A+|
What is a Term Annuity-To-Age-18 (T-18)? - ANSWER-An annuity
for financially dependent children named as beneficiaries of their
RRSP/RRIF.
What is an Impaired Annuity? - ANSWER-A life annuity for an
annuitant with a shortened life expectancy due to a serious
disease.
What are the deposit requirements for an Immediate Annuity? -
ANSWER-An immediate annuity must be funded by a lump sum.
What is a LIRA? - ANSWER-A tax-advantaged account holding
funds 'locked-in' from a pension plan, which cannot be withdrawn
until retirement.
, Page |2
What is a LIF? - ANSWER-A Canadian retirement income vehicle
allowing individuals to convert LIRA into a retirement income
stream, with regulated withdrawal limits.
What must a spouse acquire when transferring locked-in savings?
- ANSWER-A joint and last survivor life annuity.
When can annuity payments begin? - ANSWER-Payments cannot
begin until after the last deposit has been made.
What is the difference between Immediate and Deferred income?
- ANSWER-Immediate income starts on the next payment date,
while deferred income has an accumulation phase and a payout
phase.
What is a Level Income Annuity? - ANSWER-An annuity that pays
the same amount for its duration.
What is an Indexed Income Annuity? - ANSWER-An annuity that
pays interest based on a market index, addressing inflation risk.
, Page |3
What is a Variable Income Annuity? - ANSWER-An immediate life
annuity that earns market-linked returns, mitigating interest and
inflation risks but introducing equity risk.
What happens if the annuitant dies during a Term Annuity? -
ANSWER-The beneficiary can choose from an installment refund,
cash refund, or capital protection guarantee.
What is a Life Annuity with no guarantee? - ANSWER-If the
annuitant dies after the first payment, no further payments are
made to a beneficiary.
What choices does a Life Annuity with a guarantee provide? -
ANSWER-It offers capital installment and cash refund choices.
How can interest rate risk in an annuity be managed? - ANSWER-
By using investment capital to buy a series of annuities instead of
a single one.
, Page |4
How can an annuity's capital loss be managed? - ANSWER-By
adding a guarantee period and beneficiary to the contract.
What is a key restriction of payout annuities? - ANSWER-Payout
annuities do not permit withdrawals.
What happens to an annuity contract if a client has started
receiving payments? - ANSWER-The contract cannot be
terminated even if the client needs money.
What is an accumulation annuity? - ANSWER-An accumulation
annuity allows a withdrawal with a Market Value Adjustment
(MVA) charge.
Can an annuity funded by the transfer of LIRA or LIF be
surrendered? - ANSWER-No, it cannot be surrendered.
What happens when a term annuity is surrendered? - ANSWER-
Future annuity payments are taken in a lump sum.
