Annuities

A life annuity translates into peace of mind. Benefit from a fixed income stream for the rest of your life, without the hassle of managing your investments.

Payments cease when you pass away unless your death occurs before the end of the guaranteed period ¹ you chose. In the latter case, your heirs can continue to receive your annuity until the end of this period.

For instance: Bob buys a life annuity for $115,000 at age 65. This annuity will pay him an income of $560 per month for the rest of his life, regardless of when he dies. At age 82, he will have recovered the purchase value of his annuity (having received a total of $115,000), and even then, he will continue to receive $560 each month until his death.

A joint and survivor annuity is an annuity for couples that provides a fixed lifetime income stream as long as one spouse lives.

This means you will receive fixed payments for the rest of your life, and if you predecease your partner, we will continue to pay your spouse the full amount of the annuity or a set percentage, depending on your choice, for the rest of his or her life.

For instance: Paul buys a joint life annuity at age 65 for $150,000, which pays him $650 per month. He receives these payments until his death at age 85. His spouse, Tony, will receive another $390 per month until his own death, five years later. In total, they will have received $179,400 during their retirement.

The annuity guarantees a minimum income for a fixed period of time. It's a way to spread your retirement savings over a given period, without managing investments.

Payment amounts are guaranteed and pre-determined based on criteria such as the:

• principal amount invested
• interest rate in effect
• duration of the annuity

If the money you use to buy your annuity comes from a RRIF or RRSP, the annuity must support you until you are at least 90 years old.

Payments are made throughout the term of the contract. If you pass away before the end of the term, your heirs continue to receive payments until the end of the term. Conversely, once the annuity term has expired, payments cease and the contract ends.