Christian, age 68, has just suffered a heart attack and has a shortened life expectancy. He owns a segregated fund contract from the Vesticom Insurance Company. Unfortunately, the Vesticom Insurance Company has just gone bankrupt and can no longer honour its guarantees. Christian purchased the fund 2 years ago with an initial investment of $135,000, and named his colleague, Martin, as irrevocable beneficiary. The fund is now valued at $78,000 and has a 75% maturity guarantee and 75% death benefit guarantee. Which of the following statements about Christian’s investment is CORRECT?

a)Christian can exercise his right of rescission today and he will receive $78,000.

b)Medical underwriting will be required if Christian switches to another segregated fund.

c)If Christian died today, Martin’s death benefit would not be protected from creditors.

d)Martin would receive a benefit of $86,062.50 if Christian were to die today.

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