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Tuesday, May 21, 2013
Benefits of a Single Premium Immediate Annuity (SPIA)
SPIA: Single Premium Immediate Annuity
SPIAs allow you to convert registered or non-registered capital into a regular stream of income, guaranteed for the life of one or two annuitants and for a specified period of time, if desired.
Key benefits of a Single Premium Immediate Annuity Include:
Guaranteed income: Your future income is guaranteed, and you will know exactly how much income you will receive for life or for the period chosen. With a SPIA, there's no danger of your outliving your capital.
Easy to manage: You don't need to be concerned about ongoing investment or management decisions. Once you purchase a SPIA, the regular stream of income is guaranteed.
Tax-efficient income: A SPIA immediately converts your capital into a stream of tax-efficient income.
Additional benefits of a SPIA
Along with competitive rates and a wide range of options, SPIAs provide additional benefits to help you meet your income goals:
Potential creditor protection: As an insurance product, a SPIA gives you the ability to name a family member as your beneficiary. Accordingly, your investments may be protected from creditor claims. A number of conditions or restrictions could apply. Please consult a legal advisor for more information about creditor protection.
Estate planning: Since a beneficiary can be named within a SPIA, the probate process, as well as the costs and delays associated with probating a will, is bypassed.
SPIA at a Glance
Minimum Annuitant Issue Age
• 18 or 19 (depending on the Province) to follow the age of majority law.
• For locked-in pension funds, the minimum issue age is based on the Province and fund source
(i.e.: LIRA, LRSP, RLSP, LIF, LRIF, RLIF, PRIF and RPP). For example, a client must be 50 or older for funds received from an Alberta LIF.
Maximum Annuitant Issue Age
• 90 for registered plans
• 85 for non-registered plans, though some companies will issue up to age 90
Minimum Deposit
• $5,000 (Term Certain Annuity: $10,000)
Plan Type Options
• Single Life Annuity with or without a Guaranteed Period
• Joint and Survivor Life Annuity with or without a Guaranteed Period
• Term Certain Annuity
Payment Frequency Options
Choice of: Annual, Semi-annual, Quarterly and Monthly
Guaranteed Period Options
Choice of:
• Specified length of time (e.g. 0, 5, 10, 15, 20 years)
• For registered plan, the term certain annuity must be to age 90
Indexing
Annuity income payments can increase at a fixed annual rate, up to 4% for registered funds.
SPIA Calculator
Receive your instant, no-obligation spia quote, use the spia calculator
SPIA Quote
Get a SPIA Quote! Enter an amount you wish to invest and we'll provide the exact monthly amount you will receive for the rest of your life time.
Short videos on SPIA
View "What is a single premium immediate annuity?" and "How is a single premium annuity calculated?"
SPIA Illustration
An example of a SPIA Illustration that you will receive when you request for a SPIA quote.
SPIA Applications
A list of various SPIA applications available for download. Once you have requested a SPIA quote and decided on the company we'll then complete a SPIA application.
