Which of the Following Is an Allowable Means of Distributing

question 16

Multiple Choice

Which of the following is an allowable means of distributing your life insurance benefits upon your death?

• A) Fixed period option
• B) Fixed income option
• C) Life income option
• D) Lump sum payment
• E) All of the above represent allowable means

---

Definitions:

Future Value

The value of an investment at a specified date in the future, considering factors like interest rates and time.

Compounded Semi-Annually

Interest calculation method where the compounding occurs twice a year, impacting the total interest earned or paid on investments or loans.

RRSP

Registered Retirement Savings Plan, a Canadian investment account for holding savings and investment assets, with certain tax benefits.

Compounded Monthly

A method that involves computing interest for a month by adding it to both the original principal sum and the interest that has been accumulated from past periods.