Tuesday, March 09, 2010
What is a life annuity?
Definition of a life annuity:
Single Premium Immediate Annuities (SPIAs) provide a regular income stream.
You will enjoy a steady stream of income for life along with the security that you will never outlive your money. You'll never have to worry about market fluctuations or other investment management decisions.
How it works: You simply deposit a lump sum of money and receive a guaranteed income stream for life. This income can also be guaranteed for a specified period of time in case the annuitant(s) die pre-maturely.
A life annuity is the simplest investment income option. In exchange for a sum of money, a life annuity from an insurance company provides you with a stream of income payments for life.
The income payments you receive are made up of interest and principal and are determined based on:
Your age (for joint cases, your spouse's age)
Current interest rates
The length of time the payments are guaranteed
The amount of money used to purchase the annuity
Life annuities can be purchased with registered funds such as the proceeds of a RRSP or RRIF or with non registered funds from your GIC or savings account.
Life Annuities at a Glance
Types of Single Premium Immediate Annuities (SPIAs)
Single Life Annuity
Joint Life Annuity
Term Certain Annuity
Maximum Annuitant Issue Age:
Age 90
Income Payment Options:
Monthly, Quarterly, Semi-annual, Annual
Guaranteed Period Explanations:
Life annuities are guaranteed for the lifetime of the annuitant or joint annuitants. You can also add a guarantee period of a number of years say 10 years, that the payments will be made.
Specified length of time (e.g. zero, 5, 10, 15, 20 years)
Or to age 90 (maximum guarantee period)
Taxation:
Annuities purchased with non-registered funds are prescribed to spread the tax-payable evenly throughout the lifetime of the annuity.
Life Annuity Quotes
View a sample of a life annuity quote when you request a quote from us. You will receive the rates from top Canadian Life Insurance companies in Canada.
View an Annuity Quote Sample (
pdf , 4 pgs, 87kb)
List of Insurance Companies
Get life annuitie quotes from all the Canadian life insurance companies in Canada. We provide not just one quote but ALL the quotes in Canada. We deal with all the companies so that you get the BEST possible income.
The list of annuity quotes come from the following and other insurance companies:
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The Hughes Trustco Group Ltd have been in business since 1972. We are proud members of the Better Business Bureau.
Questions and Comments
We are happy to answer any questions you may have on your life annuity. Kindly type your question and will get back to you within 24 hours.
