Segregated Funds & Annuities - Chapter 3 Exam Questions with correct Answers

Segregated Funds & Annuities - Chapter 3 Exam Questions with correct Answers An accumulation annuity. (Reference: Chapter 3) -Correct Answer-Which type of annuity is most appropriate for a young investor with ample income and is primarily interested in investment growth? Buy a series of annuities over time. (Reference: Chapter 3) -Correct Answer-Tony wishes to purchase an annuity, but is concerned interest rates will rise significantly. What can Tony do to protect himself against this risk? A prescribed annuity. (Reference: Chapter 3) -Correct Answer-What type of annuity should Brenda purhase with non- registered funds to provide her with a predicable and consistent taxable income? Provides periodic payments to be received by an annuitant in consideration of a lump sum or a series of sums deposited to the contract. (Reference: Chapter 3) -Correct Answer-What is an annuity contract? Each of the two annuitants in a joint-life annuity. (Reference: Chapter 3) -Correct Answer-Who is a co-annuitant? An annuity based on the life of an annuitant with a shortened life expectancy. Also known as an enhanced annuity or age-related annuity. (Reference: Chapter 3) -Correct Answer-What is an impaired annuity? An annuity which, after the death of the annuitant, continues to be paid in whole or in part to the co-annuitant named in the contract, until their death. (Reference: Chapter 3) -Correct Answer-What is a joint and last survivor annuity? An account created for the transfer of funds from a defined benefit pension plan, defined contribution pension plan or pooled registered pension plans. (Reference: Chapter 3) -Correct Answer-What is a Locked-in Retirement Account (LIRA)? How are payout annuities funded? -Correct Answer-They are funded by a premium or a deposit to the annuity contract by the contract's owner. What are the advantages of annuities? -Correct Answer-1. Easy to un