We were asked a question yesterday about why we had posted annuity rates where the monthly payments were different for registered and non-registered funds.

Annuity rates can change every day according to company demand, and the monthly payments are normally the same whether the current source of  funds are registered or non-registered. You can see an example of a registered annuity and non-registered annuity below that have the same monthly income.

Annuity rates are supplied by the companies themselves. If for some reason companies want registered money in lieu of non registered funds, the rates will reflect that.

Again, annuity rates guaranteed for say 5 years can sometimes be less than the payments guaranteed for 10 years.

And the same thing can be seen with life insurance rates where the annual premium for a 5 year term life policy may be more than a policy guaranteed for 10 years!

Non-registered Annuity

Annuity where the Source of Funds is Non-Registered

Non-Registered Annuity

Registered Annuity

Annuity where the Source of Funds is Registered

Registered Annuity

Posted by: Ivon T. Hughes

Ivon is a leading expert in life annuities in Canada. His website LifeAnnuities.com is a recognized authority on annuities. He's also an established insurance and investment broker, licensed across Canada through The Hughes Trustco Group since 1972. Recently, he's been redefining how annuities are sold in Canada.

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