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Segregated Funds And Annuities Exam Version 1 Newest 2025 Exam Complete Questions And Correct Detailed Answers (Verified Answers) |Already Graded A+
Money transferred from another investment or savings account, registered or non-registered, can form the lump-sum deposit. If a registered account is the source of transferred money, then the contract is set up as another registered account to continue its ______. - ANSWER-Tax deferral
______guarantees that a segregated fund contract owner will retain up to $60,000 or 85% of guarantees, whichever is higher.In other words, it allows a segregated fund contract owner to retain 100% of her guaranteed investment if it is equal to or smaller than $60,000. - ANSWER-Assuris
________permit withdrawals, subject to minimum and maximum amounts. Payout annuities do not permit withdrawals.
- ANSWER-Accumulation annuities
There is no ______in the application for a segregated fund contract. This means that the health of the contracts policy 1 / 3
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owner or annuitant is not accessed because guarantees are based on the strength of the investment and not the persons life. - ANSWER-Medical underwriting
Funds are also subject to specific risks, based on their type. For instance, a bond fund is highly susceptible to interest rate risk but has little market risk. An ________fund, on the other hand, has very high market risk and low interest rate risk. - ANSWER- Equity
Dividends received from ______are taxed at a lower rate than interest income as a result of the dividend tax credit. This increases investor appeal. - ANSWER-Canadian corporations
Balanced funds suit an investor who wants some exposure to stocks, for growth potential, but is not prepared to accept the volatility of stocks alone. A ________emphasizes binds and security of capital, while having an equity component to provide growth potential to offset inflation. - ANSWER-Balanced income fund
If the investor needs to make a withdrawal before the contract matures, she does not receive the benefit of the ______and 2 / 3
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receives market value for the withdrawal minus any outstanding sales charges, such as the DSC. - ANSWER-Maturity guarantee
The ______feature allows the investor in a segregated fund to lock in, at specified intervals, increases in the market value of the investment. If market value has declined at a ______date, then the______feature is not utilized. - ANSWER-Reset
______are similar to GICs but come with the beneficial features of a life insurance contract, such as the ability to name a beneficiary and creditor protection. - ANSWER-Accumulation annuities
Group________do not offer the participants either maturity or death benefit guarantees, thus not providing the plan members with the down market "safety net" available to individual envestors in ________. - ANSWER-Segregated funds
A______annuity is an immediate life annuity with the ability for the annuitant to earn market-linked returns. A market-linked return is a return linked to performance of a market index, such as the TSX. - ANSWER-Variable Income
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