Free Preparation Discussions
MENU
IFSE Institute LLQP Exam - Topic 1 Question 7 Discussion
Topic #: 1
Arianna, a healthy 61-year-old university professor, is retiring this year and wants to transfer the funds she accumulated in her registered retirement savings plan (RRSP) into an annuity. She is looking at different options and would like to know which of the following annuities will pay the highest monthly benefit.
A life annuity typically provides the highest monthly benefit compared to other annuity types because it does not include additional guarantees or features that reduce the payout, such as a guarantee period or indexing. Since Arianna is healthy and seeking the highest monthly income, a standard life annuity, which pays a fixed income for life without any additional features, will maximize her monthly benefit. LLQP resources confirm that adding options like guarantees or indexing typically lowers the monthly payout due to the insurer's increased liability.
Option B would provide a lower benefit than a standard life annuity because of the 10-year guarantee. Option C (Indexed annuity) would have lower initial payments due to the cost of inflation protection, and Option D (Joint life annuity) would provide less income as it is designed to continue payments to a surviving spouse.
Abel
9 months agoJose
9 months agoCordelia
9 months agoJolanda
9 months agoRolande
10 months agoMary
10 months agoThomasena
10 months agoNobuko
10 months agoLai
10 months agoAlyce
10 months agoHan
10 months agoVeta
10 months agoGwenn
11 months agoElmer
2 years agoSherita
2 years agoVal
2 years agoHuey
2 years agoLawrence
2 years agoViva
2 years agoStevie
2 years agoVincent
2 years agoVanna
2 years agoAudra
2 years agoEnola
2 years agoLeila
2 years agoKathrine
2 years agoRachael
2 years agoCiara
2 years agoRosita
2 years agoCasie
2 years ago