Segregated Funds & Annuities - Chapter 3 Study Guide Questions And Correct Answers

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".}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?}When does annuity income begin? {Ans: It may begin immediately or at a selected future date.}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?}Each of the two annuitants in a joint-life annuity. (Reference: Chapter 3) {Ans: Who is a co-annuitant?}What are the advantages of annuities? {Ans: 1. Easy to understand 2. Income security 3. Creditor protection 4. Estate planning benefits 5. Annuitant protection}What does LIRA stand for? {Ans: Locked-in retirement account}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?}What two products make an insured annuity? {Ans: Permanent life insurance and a life annuity.}An annuity which, after the death