Annuity certain
An annuity certain allows you to obtain a guaranteed regular income for a determined number of years (the duration). Certain annuities purchased with money from an RRSP or RRIF must cover a period up to your 90th birthday. If you die before the end of the term, your estate will continue to receive payments.
Life annuity
A life annuity allows you to obtain a guaranteed regular income for life. Payments usually stop when you die, and your estate receives no money. You can choose to add an option that allows your spouse, your beneficiary your estate to continue to receive payments after your death.
PRODUCTS WITH A GUARANTEED MINIMUM INCOME
Products with a guaranteed minimum income are a type of annuity that provides guaranteed retirement income, which can increase with investment earnings made in your portfolio and certain bonuses. Learn more about products with a minimum income guarantee.
Three ways to buy an annuity
You can buy an annuity:
in person with a broker or a licensed insurance agent;
online or over the phone with an insurance broker or company;
with a financial advisor licensed to sell insurance.
Some investment companies may also have a licensed broker on staff who can sell annuities.
There are several types of life annuities:
Immediate life annuities. They entitle the holder to the payment of an annuity, guaranteed for life, upon deposit of the “capital constituting the annuity”.
Deferred life annuities. In this case, each contribution paid entitles you to a fraction of the life annuity, the amount of which is known immediately. As payments are made, the insured accumulates rights expressed in euros. Point annuity systems (or annuity units) operate on the same principle, with the contributions paid to assign rights in points according to the mortality tables in force.
Life annuities resulting from the conversion, at maturity, of the capital invested in a life insurance contract. Any contract may thus provide that the beneficiary may opt, at the end of the contract, for the payment of a life annuity. We then speak of optional annuity exit.
The minimum age required to benefit from his PERP is the retirement age, depending on the status of the member. The outcome may nevertheless be postponed until the age corresponding to the member’s life expectancy less than 15 years at the latest.
Different types of annuities can be applied:
Life annuity: it is paid periodically, for a defined amount and guaranteed for life regardless of the date of death. On the death of the member, the payment of the annuity stops.
Joint life annuity: in this type of annuity, a beneficiary is designated. It is 60 to 100% reversible to the intended beneficiary. Thus, on the death of the member, the annuity paid to him continues to be paid but to the benefit of the beneficiary at the rate provided, and this, until his death.
An annuity in stages: this annuity can be increased or reduced depending on the period.
The progressive pension is reduced at the start of retirement and increased at the end of life expectancy
The digressive pension will be higher in the first years and then lower.
Namely that this annuity can also be reversible, it is then the annuity by reversible stages.
Guaranteed annuities ( reversible guaranteed annuities ): this type of annuity makes it possible to define a period (from 5 to 20 years) of a minimum annuity payment, whether the member is still alive or not. Thus, in the event of the death of the member before the expiry of the guaranteed annuities, the beneficiaries receive the annuities until the end of the defined period. Otherwise, the insured receives the pension for his entire life.
