According to the LLQP Segregated Funds and Annuities curriculum, investment suitability must take into account not only risk tolerance and diversification, but also personal circumstances and specific protection needs. Gerard’s situation clearly highlights a need for capital protection upon death, given the high-risk nature of his occupation as a professional stuntman.

Although Gerard’s current investments are diversified and professionally managed, the significant market fluctuations indicate exposure to market risk without any guarantees. Traditional investments such as stocks, mutual funds, and exchange-traded funds (ETFs) do not provide any contractual protection of capital. Their value depends entirely on market performance, and in the event of the investor’s death, beneficiaries receive only the market value at that time, regardless of prior contributions.

Segregated funds, however, are uniquely suited to Gerard’s needs. As outlined in the LLQP study guide, segregated funds are insurance contracts that combine market-based investing with built-in guarantees. One of their most important features is the death benefit guarantee, which typically protects 75% or 100% of the original deposits (less withdrawals) if the investor dies before maturity. This directly addresses Gerard’s concern about ensuring that a substantial portion of his invested capital is preserved for his beneficiaries, even if markets are down at the time of death.

In addition, segregated funds offer professional management and diversification similar to mutual funds, which Gerard already values. They also provide potential estate planning benefits such as bypassing probate and faster payment to beneficiaries, which are emphasized in the LLQP curriculum as key advantages for clients with higher personal risk exposure.

Options A, B, and D are unsuitable because none of these investments offer contractual death benefit protection. While diversification can reduce volatility, it does not guarantee capital preservation upon death.

Therefore, based on LLQP Segregated Funds and Annuities principles, the most suitable investment for Gerard is segregated funds, making Option C the correct and fully verified answer.