Question: 2 5 3 . Christopher's segregated fund contract has a 7 5 % maturity guarantee and a 7 5 % deathbenefit guarantee. At the time

253 .

Christopher's segregated fund contract has a

75 %

maturity guarantee and a

75 %

deathbenefit guarantee. At the time of purchase, he was committed to keeping the investment tomaturity. Christopher has owned his funds for six years. Unfortunately, his wife has just passedaway, and he must take a withdrawal from the contract to pay her final expenses. The fund hasdecreased in value by

6 %

at the time of the withdrawal.What will be the effect of the withdrawal?The contract maturity date will be extended by six years.The contract will mature at the time of the withdrawal.The value of the maturity guarantee and death benefit guarantee will be recalculated based onthe lower value of the fund units owned by Christopher.The value of the maturity guarantee and death benefit guarantee will be recalculatedbased on the fewer fund units owned by Christopher.

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