11/3/25, 3:49 PM Segregated Funds and Annuities (SFA) questions and answers Flashcards | Quizlet
Segregated Funds and Annuities (SFA) questions
and answers
Save
Terms in this set (144)
Segregated Fund is also an investment. it is just a
fancy version of mutual fund.
Segregated Fund is an insurance product, and it is an
investment. Segregated Funds offer some unique
What is Segregated Funds features that mutual funds generally do not, such as:
- Guarantees
LLQP - SFA VL 01 - Ability to BY-Pass Probate
- Creditor Proofing
A segregated Fund is a great product but remember
it's not Life Insurance! rather, it's an investment
somewhat similar to a Mutual Fund.
https://quizlet.com/1102412089/segregated-funds-and-annuities-sfa-questions-and-answers-flash-cards/?new 1/45
,11/3/25, 3:49 PM Segregated Funds and Annuities (SFA) questions and answers Flashcards | Quizlet
With the segregated funds, the funds must guarantee
- A minimum of 75% if the investor's principle at death,
or
- Upon a 10-year maturity mark
- Some Segregated Funds even guarantee as much as
Guarantee in Segregated 100% at death or at the 10-year mark.
Funds
As an investor, all the insurer is doing is guaranteeing
LLQP - SFA VL 01 what he put in.. what about growth?
This guarantee is only for peace of mind. The investor
does hope that they have positive returns, but worst
case scenario. they have some level of guarantee
upon death or upon 10-year maturity mark.
https://quizlet.com/1102412089/segregated-funds-and-annuities-sfa-questions-and-answers-flash-cards/?new 2/45
,11/3/25, 3:49 PM Segregated Funds and Annuities (SFA) questions and answers Flashcards | Quizlet
Sally and Jacob are 1. Purchase Life Insurance:
married and have a new
born daughter. Jacob will Based on his age, let's assume $200 per month would
be the only income earner have purchased a $1,000,000 life insurance [policy.
in the family and currently - Upon Jacob's death, Sally would receive death
earns $50,000 per year. benefit of $1,000,000.
What would happen to - this would be enough If invested properly, it would
their young family if Jacob likely replace Jacob's income so Sally and father
dies permanently? would be taken care of.
They have $200 available
in their monthly budget 2. Invest in a Segregated Fund:
and wanted to protect It has only been one month, so they would have been
against this risk. invested total investment of $200.
- The fund would guarantee a minimum of 75% of their
They considered: total investment or current market value.
- Life insurance -The bottom line is, Sally would receive approx $200
- Segregated Fun which is clearly not enough
Investment
One month later Jacob,
died.
What would have
happened if they bought
1. life insurance policy
2. Segregated Fund
Investment
LLQP - SFA VL 01
https://quizlet.com/1102412089/segregated-funds-and-annuities-sfa-questions-and-answers-flash-cards/?new 3/45
, 11/3/25, 3:49 PM Segregated Funds and Annuities (SFA) questions and answers Flashcards | Quizlet
Assume that Amanda has 1. Not enough knowledge/expertise to do the
$5000 in her bank account appropriate research
that she would like to 2. Even if she has expertise, she may not have enough
invest in a stock market for time to pick stocks or it may not be justified for small
several years to achieve investment
growth. 3. Not enough money to achieve a fully diversified
portfolio. Most experts would state you need
What issues could upwards of 20 different stocks in 20 different
Amanda face when she companies in order to diversify a portfolio and $5,000
only $5,000 to invest in is not enough.
the stock market?
LLQP - SFA VL 02
1. A mutual fund can be thought as a pot of money
where many investors contribute
2. Each investor obtains units of the fund based on
how much he or she contributes.
3. The fund manager invests the portfolio according
What is mutual fund? to a specific mandate. For example, if it is a equity
fund, he would in invest in equity.If it is a bond fund,
LLQP - SFA VL 02 he would invest in a bond.
4. The investors can sit back and let the fund manager
do their job.
5. Profit or loss is determine by the amount
contributed (how many units) and the performance of
the fund.
https://quizlet.com/1102412089/segregated-funds-and-annuities-sfa-questions-and-answers-flash-cards/?new 4/45
Segregated Funds and Annuities (SFA) questions
and answers
Save
Terms in this set (144)
Segregated Fund is also an investment. it is just a
fancy version of mutual fund.
Segregated Fund is an insurance product, and it is an
investment. Segregated Funds offer some unique
What is Segregated Funds features that mutual funds generally do not, such as:
- Guarantees
LLQP - SFA VL 01 - Ability to BY-Pass Probate
- Creditor Proofing
A segregated Fund is a great product but remember
it's not Life Insurance! rather, it's an investment
somewhat similar to a Mutual Fund.
https://quizlet.com/1102412089/segregated-funds-and-annuities-sfa-questions-and-answers-flash-cards/?new 1/45
,11/3/25, 3:49 PM Segregated Funds and Annuities (SFA) questions and answers Flashcards | Quizlet
With the segregated funds, the funds must guarantee
- A minimum of 75% if the investor's principle at death,
or
- Upon a 10-year maturity mark
- Some Segregated Funds even guarantee as much as
Guarantee in Segregated 100% at death or at the 10-year mark.
Funds
As an investor, all the insurer is doing is guaranteeing
LLQP - SFA VL 01 what he put in.. what about growth?
This guarantee is only for peace of mind. The investor
does hope that they have positive returns, but worst
case scenario. they have some level of guarantee
upon death or upon 10-year maturity mark.
https://quizlet.com/1102412089/segregated-funds-and-annuities-sfa-questions-and-answers-flash-cards/?new 2/45
,11/3/25, 3:49 PM Segregated Funds and Annuities (SFA) questions and answers Flashcards | Quizlet
Sally and Jacob are 1. Purchase Life Insurance:
married and have a new
born daughter. Jacob will Based on his age, let's assume $200 per month would
be the only income earner have purchased a $1,000,000 life insurance [policy.
in the family and currently - Upon Jacob's death, Sally would receive death
earns $50,000 per year. benefit of $1,000,000.
What would happen to - this would be enough If invested properly, it would
their young family if Jacob likely replace Jacob's income so Sally and father
dies permanently? would be taken care of.
They have $200 available
in their monthly budget 2. Invest in a Segregated Fund:
and wanted to protect It has only been one month, so they would have been
against this risk. invested total investment of $200.
- The fund would guarantee a minimum of 75% of their
They considered: total investment or current market value.
- Life insurance -The bottom line is, Sally would receive approx $200
- Segregated Fun which is clearly not enough
Investment
One month later Jacob,
died.
What would have
happened if they bought
1. life insurance policy
2. Segregated Fund
Investment
LLQP - SFA VL 01
https://quizlet.com/1102412089/segregated-funds-and-annuities-sfa-questions-and-answers-flash-cards/?new 3/45
, 11/3/25, 3:49 PM Segregated Funds and Annuities (SFA) questions and answers Flashcards | Quizlet
Assume that Amanda has 1. Not enough knowledge/expertise to do the
$5000 in her bank account appropriate research
that she would like to 2. Even if she has expertise, she may not have enough
invest in a stock market for time to pick stocks or it may not be justified for small
several years to achieve investment
growth. 3. Not enough money to achieve a fully diversified
portfolio. Most experts would state you need
What issues could upwards of 20 different stocks in 20 different
Amanda face when she companies in order to diversify a portfolio and $5,000
only $5,000 to invest in is not enough.
the stock market?
LLQP - SFA VL 02
1. A mutual fund can be thought as a pot of money
where many investors contribute
2. Each investor obtains units of the fund based on
how much he or she contributes.
3. The fund manager invests the portfolio according
What is mutual fund? to a specific mandate. For example, if it is a equity
fund, he would in invest in equity.If it is a bond fund,
LLQP - SFA VL 02 he would invest in a bond.
4. The investors can sit back and let the fund manager
do their job.
5. Profit or loss is determine by the amount
contributed (how many units) and the performance of
the fund.
https://quizlet.com/1102412089/segregated-funds-and-annuities-sfa-questions-and-answers-flash-cards/?new 4/45
