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Introduction to SEG Funds

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Segregated Funds are a combination of what two things?

a)

Life Insurance

b)

Disability Insurance

c)

Mutual Funds

d)

Hedge Funds

e)

Health Insurance

2.

Segregated Funds offer what benefits? (Select all that apply)

a)

Principle Protection

b)

Avoidance of Probate

c)

Creditor Protection

d)

Superior growth to Mutual Funds

3.

Who receives the guaranteed value upon maturity?

a)

Beneficiary

b)

Owner

c)

Insurance company

4.

What are the requirements of an Annuitant? (Select all that apply)

a)

Must be a living person

b)

Must be the owner of the contract

c)

Must be at least 15 days old

d)

Must be at least 18 years of age

e)

Must be a Canadian resident when the policy is established

5.

The higher the Guarantee level on a SEG contract, the higher the cost of the fund.

a)

True

b)

False

6.

Class B (Combined) offers what Guarantee level?

a)

100% DG, 75% MG

b)

75% DG, 100% MG

c)

100% DG, 100% MG

d)

75% DG, 75% MG

7.

An owner can only access their Market Value on the Maturity Date.

a)

True

b)

False

8.

At maturity, the higher of the maturity guarantee and market value is paid to the owner.

a)

True

b)

False

9.

The higher of the death guarantee or market value is paid out to the beneficiary upon the death of the owner.

a)

True

b)

False

10.

The Benefit Determination Amount (BDA) is the value used to calculate your Guarantees.

a)

True

b)

False

11.

A client can hold a Segregated Fund Contract beyond the Contract Maturity Date.

a)

True

b)

False

12.

If a client made their initial contribution into a SEG fund contract on July 1st 2004, when will their anchor date be?

a)

January 1st 2004

b)

July 1st 2004

c)

December 31st 2004

13.

If a deposit maturity date falls in the closing decade of a contract, the deposit maturity date will then be extended to the contract maturity date (age 100 of annuitant).

a)

True

b)

False

14.

Resets can lock in both market gains and losses.

a)

True

b)

False

15.

Which of the following cappings no longer allow any purchases into the fund/contract?

a)

Hard Capped Contract

b)

Soft Capped Contract

c)

Special Hard Capped Contract

d)

Restricted Funds