Annuity

Question 1

1. What two types of guarantees do segregated funds offer?
   a. Guarantee upon the contract’s maturity date, typically 10 year maturity
   b. Guarantee upon death

Answer 1

5. What type of annuity held outside of registered plan spread the taxable interest income evenly over the life of the annuity? - Prescribed life annuity
   a. Prescribed life annuity – the overall tax liability is spread evenly over the life of the annuity
   b. Non-prescribed - the annuity holder pays tax on the interest protion received earch. This means there will be more tax in the early years, and less tax in the alter years

Question 2

6. Life annuity, Cash refund – the annuity pays for life, if annuitant dies, before at least received initial premium back, the difference is paid to beneficiary as lump sum.