Retirement Planning

Question 1

Term Certain

Answer 1

fund a childs education, usually no beneficiary

Question 2

Temporary annuity

Answer 2

payable until death or term end, like a bridge benefit. cheaper then term certain because no death benefit

Question 3

Commutable

Answer 3

can commute built up value in annuity. receives a market value adjustment if commuted

Question 4

accumulation (deferred annuity)GIF

Answer 4

invested in gic structure or seg funds to build value prior to thje annuity starting.

Question 5

Accrued rate annuity vs prescribed/proportional taxation

Answer 5

tax bill is lowered over time as principal is depleted. eventually becoming 0

level tax bill based on projected mortality

Question 6

Death benefits for spouse vs other beneficiary

Answer 6

spouse can receive registered annuity in lump sum or income. other beneficiary can only receive lump sum,. taxable to deceased in event of lump sum. spouse can receive income payments taxed in their hands