Annuities are a form of insurance that enable you to receive a guaranteed lifelong income once you leave the workforce. Annuities can be used to supplement other income options, such as RRSPs and can provide you with financial security in your post retirement years.

You can buy an annuity with money from an RRSP, RRIF or other non-registered account. The money is then returned to you, with interest, in regular payments that you can choose to receive for a set number of years or for the rest of your life. You can also decide how often you would like to receive payments – monthly, quarterly, semi-annual or annual, depending on your specific situation.

Types of annuities
There are two main types of annuities:

  1. Term-certain annuity – Gives you a guaranteed regular income for a set number of years (a term). If you purchase this type of annuity with money from an RRSP or RRIF, the term must extend to age 90.  If you pass away before the term ends, the payments will go to your estate.
  2. Life annuity – Gives you a guaranteed income for life. Payments usually stop when you pass away and no money will go to your estate.
Gulf and Fraser Insurance Services Ltd. is a wholly-owned subsidiary of G&F Financial Group. This website is for informational purposes only and is not intended to provide specific insurance, financial, investment, tax, or other advice to you, and should not be acted or relied upon in that regard. We encourage you to seek personalized advice from a qualified professional. Insurance products are underwritten by certain licensed insurance companies and are only available throughout British Columbia, Canada