LLQP Segregated Funds & Annuities · Component 2.3 · 30% of the exam
A joint-and-last-survivor annuity:
- APays only while both annuitants are alive, since the contract is measured on two lives together
- BPays double the single-life amount, since two people are covered by the same premium
- Pays while either annuitant is alive, with the survivor's payment continuing at 100% or a reduced share
- DStops at the first death, with the survivor receiving the commuted value of the remaining payments as a lump sum
Correct answer: C) Pays while either annuitant is alive, with the survivor's payment continuing at 100% or a reduced share
Joint annuities protect the surviving spouse. The survivor percentage and any guarantee period affect the initial income.
Why the other options are wrong
- AIt continues to the survivor.
- BThe payment does not double; it is lower than a single-life annuity.
- DIt stops at the last death, not the first.
Exam tip
Joint-and-survivor: pays until the last death; choose the survivor percentage.
Common mistake
Buying a single-life annuity with registered pension money where a joint form is required unless waived.
What this tests
CISRO competency component 2.3 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 2
- A segregated fund's 'guaranteed amount' after a partial withdrawal under proportional reduction is:
- A distinctive estate advantage of a segregated fund over a non-registered mutual fund held jointly with a child is:
- Segregated fund guarantees are most valuable relative to their cost when:
- A segregated fund's annual statement reports:
- Compared with a segregated fund, an exchange-traded fund (ETF) generally offers:
- A segregated fund's 'automatic death benefit reset' feature:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.