Annuity Insurance

Life insurance policy used to buy a life annuity

By Ivon T Hughes
annuity insurance
Figure 1. Life Insurance + Life Annuity

Annuity insurance refers to two different products

Annuity insurance can refer to two different products or ideas which have been put together to meet a particular need.

The first product that annuity insurance can refer to is the idea of taking out a life insurance policy equal to the same amount of capital you use to buy a life annuity. The purchaser is usually older age so instead of receiving 2% or 3% interest from a long term GIC, the annuitant can buy a life annuity. Thus, he or she has more money to pay for the life insurance policy premiums.

The second idea of annuity insurance is for the heirs own a life insurance policy on a relative who is buying a life annuity. As he or she needs to maximize income, the heirs agree to pay for the premiums but may or may not own the policy.

For example, a parent needs maximum income but also would like to leave funds for children or education of grandchildren. This parent has no extra money to leave but is in good health so that in itself is an asset. Accordingly the beneficiary buys a life insurance policy on the parent and will receive the proceeds on death.

Annuity insurance is a viable idea to make your money work harder.

The annuity insurance then provides income through a life annuity and family income through life insurance. This is not necessarily the right product for all families but annuity insurance is a viable idea to make money work harder.

There are many variations on these ideas and each family will have its own idea on what sort of annuity insurance works best.

Ivon T Hughes

Life insurance may be the better option

Lastly, if a family does not have any real money but the parents are in good health and insurable then life insurance should be purchased.

Ivon T Hughes

About the Author

Ivon T. Hughes

Ivon T Hughes is a leading expert in life annuities in Canada. His website LifeAnnuities.com is a recognized authority on annuities. He's also an established insurance and investment broker, through The Hughes Trustco Group since 1972. Recently, he's been redefining how annuities are sold in Canada.

GET AN ANNUITY QUOTE RIGHT NOW

Let's start the conversation!

Call 1-877-842-3863 today to get a free annuity quote.
We compare the best annuity rates in Canada! There is no cost or obligation and your privacy is guaranteed.

Ivon T. Hughes - Annuity Broker

The Hughes Trustco Group | Website: LifeAnnuities.com | Email: info@trustco.ca | Toll Free: 877-842-3863