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Life Annuity In Canada


How annuities work

Buy an annuity using some money from your saved deposits for retirement from an insurance company like Life Guard Insurance of Canada.

Start receiving income through your lifespan or for the period chosen, like a pay-cheque during your retirement.

You can buy following types of annuities:

Life annuity

– In this type, you get income payments for the rest of your life. You can opt for a guaranteed period of payments. In the event of your passing away before the period ends, the death benefit is given to your beneficiary.


Joint life annuity

– it gives income payments for the period either you or your spouse (or person of your choice) is alive.

Terms certain annuity

– it provides income payments for a specified. In the event of your death before all payments are made, your beneficiary gets a death benefit.

Tax Treatment

For registered funds, your annuity payments are taxable as income in the year as received. However, in the case of non-registered funds, a portion is taxed for every payment every year.

One reason for low credibility level of annuities among investors is the soft-pedaling by the insurance companies. Insurers consider annuities as vague, with numerous terms and conditions, and not related to present-day anxiety of investors.