Canadian Securities Course (CSC) Level 2 Practice Exam 2026 - Free CSC Level 2 Practice Questions and Study Guide

In a segregated funds structure, the contract holder is indeed the individual buying the policy. This person enters into a contract with the insurance provider, which allows them to invest in segregated funds that are often used for both investment and insurance purposes. As the contract holder, they have specific rights, including the ability to make decisions regarding the investments within the segregated funds, as well as the option to designate beneficiaries.

The annuitant, while important, is typically the person on whose life the contract is based, and they may not necessarily be the one purchasing the policy. Beneficiaries are designated individuals who receive benefits upon the contract holder's death but do not hold contractual rights themselves. The insurance provider facilitates the contract and manages the funds but is not the holder of the contract. Thus, the individual buying the policy clearly stands as the contract holder in this structure.