Segregated Funds & Annuities - Chapter 3 Study
Guide Questions and Correct Answers
1). An accumulation annuity.
(reference: chapter 3)
Ans: Which type of annuity is most appropriate for a young investor with ample income
and is primarily interested in investment growth?
2). Buy a series of annuities over time.
(reference: chapter 3)
Ans: Tony wishes to purchase an annuity, but is concerned interest rates will rise
significantly. What can Tony do to protect himself against this risk?
3). A prescribed annuity.
(reference: chapter 3)
Ans: What type of annuity should Brenda purhase with non-registered funds to provide
her with a predicable and consistent taxable income?
4). 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)
Ans: What is an annuity contract?
5). Each of the two annuitants in a joint-life annuity.
(reference: chapter 3)
Ans: Who is a co-annuitant?
6).
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, 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)
Ans: What is an impaired annuity?
7). 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)
Ans: What is a joint and last survivor annuity?
8). 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)
Ans: What is a Locked-in Retirement Account (LIRA)?
9). How are payout annuities funded?
Ans: They are funded by a premium or a deposit to the annuity contract by the
contract's owner.
10). What are the advantages of annuities?
Ans: 1. Easy to understand
2. Income security
3. Creditor protection
4. Estate planning benefits
5. Annuitant protection
11). What is an annuitant?
Ans: The person that receives money from the annuity contract. The annuitant may
also be known as the "annuitant grantee" or "payee".
12). Why are annuities a good choice for retirement income?
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Guide Questions and Correct Answers
1). An accumulation annuity.
(reference: chapter 3)
Ans: Which type of annuity is most appropriate for a young investor with ample income
and is primarily interested in investment growth?
2). Buy a series of annuities over time.
(reference: chapter 3)
Ans: Tony wishes to purchase an annuity, but is concerned interest rates will rise
significantly. What can Tony do to protect himself against this risk?
3). A prescribed annuity.
(reference: chapter 3)
Ans: What type of annuity should Brenda purhase with non-registered funds to provide
her with a predicable and consistent taxable income?
4). 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)
Ans: What is an annuity contract?
5). Each of the two annuitants in a joint-life annuity.
(reference: chapter 3)
Ans: Who is a co-annuitant?
6).
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, 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)
Ans: What is an impaired annuity?
7). 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)
Ans: What is a joint and last survivor annuity?
8). 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)
Ans: What is a Locked-in Retirement Account (LIRA)?
9). How are payout annuities funded?
Ans: They are funded by a premium or a deposit to the annuity contract by the
contract's owner.
10). What are the advantages of annuities?
Ans: 1. Easy to understand
2. Income security
3. Creditor protection
4. Estate planning benefits
5. Annuitant protection
11). What is an annuitant?
Ans: The person that receives money from the annuity contract. The annuitant may
also be known as the "annuitant grantee" or "payee".
12). Why are annuities a good choice for retirement income?
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