According to the LLQP Segregated Funds and Annuities curriculum, selecting an appropriate annuity requires matching the source of funds, risk tolerance, and income objectives. In Irwin’s case, several key facts clearly guide the recommendation.

First, Irwin’s funds are held in a LIRA, which is a registered, locked-in retirement account. Under LLQP and pension legislation principles, funds from a LIRA must be used to purchase a registered annuity (or transferred to another registered retirement income vehicle). This immediately eliminates any non-registered annuity option, making Option B incorrect.

Second, Irwin wants stable, low-risk income, which is a core feature of traditional life annuities. Although variable annuities can offer income that fluctuates based on investment performance, they do not provide predictable increases and expose the annuitant to market risk. Since Irwin specifically appreciates the reduced risk of an annuity, a variable income annuity is not suitable. This rules out Option A.

Irwin’s most important objective is that his annuity payments increase gradually over time to help offset rising private health insurance costs. The LLQP study guide explains that an indexed income annuity is designed precisely for this purpose. Indexed annuities provide income that increases each year by a fixed percentage or in line with an inflation index. While initial payments are lower than a level annuity, the increasing payments help preserve purchasing power over time, which is especially important for retirees facing rising expenses such as health care.

A registered level income annuity (Option D) would provide constant payments that do not increase, leaving Irwin vulnerable to rising costs in later years.

Therefore, considering that the funds are registered, Irwin values income security, and he specifically wants payments that grow over time, the LLQP-approved solution is a registered indexed income annuity.

Accordingly, the correct and fully verified answer is Option C.