Vincenza has just invested $5,000 in units of a segregated fund. She tells you, "I am reassured because, if the markets drop next year, I can sell my units and get my $5,000 back." What do you tell her?
a)She is correct because the insurer guarantees the principal of a segregated fund.
b)She is incorrect because the guarantee applies only at maturity (which must be at least ten years from the date of the original investment) or at the death of the holder, whichever happens earlier.
c)She is incorrect because the guarantee applies only at maturity (which must be at least five years from the date of the original investment) or at the death of the holder, whichever happens earlier
d)She is incorrect because principal protection applies only to principal-protected notes.