What You Should Know Before Buying CIBC Annuities

What CIBC Doesn't tell You About Their Annuities

In Canada, annuities are issued only by life insurance companies, not banks. Banks such as Canadian Imperial Bank of Commerce (CIBC) sell annuities through their licensed financial advisors not by the bank tellers or standard branch staff. The actual annuity policy comes from the insurer like Canada Life, Manulife and others, not the banks.

Which insurance companies issue annuity policies?

Insurance companies who issue annuity policies are:
• BMO Insurance
• Canada Life
• Desjardins Insurance
• Empire Life
• Equitable Life
• ivari
• Manulife
• RBC Insurance
• Sun Life

Does CIBC issue annuity policies?

No, CIBC does not issue annuities. In Canada, only life insurance companies can issue annuity policies. CIBC distributes annuity policies through their financial advisors usually from CIBC Private Wealth or CIBC Wood Gundy. CIBC advisors sell annuities that are underwritten and issued by one of the life insurance companies mentioned above. CIBC acts as a distributer, not an annuity issuer.

Which Insurance Companies Does CIBC Offer?

Advisors from CIBC work with a small number of Canadian life insurance companies in Canada. The exact insurance company depends on their current distribution agreements.

The most common companies are:
• Canada Life
• Manulife
• Sun Life (sometimes)
• Other insurers may be offered, but limited.

It's important to note that CIBC advisors do not provide quotes from all the insurance companies. Usually banks offer annuities from one or two partners, they do not survey the full market.

Pros and Cons of Buying Annuities from CIBC

Pros of Buying CIBC Annuities
• Trusted Brand: CIBC is well known and reputable Canadian Bank and is considered one of Canada's top 5 banks.
• Convenience: If you already bank with CIBC, it keeps your accounts all in one place.
• Easy: Manage all your investments under your CIBC accounts.

Cons of Buying CIBC Annuities
• Few Choices: CIBC usually work with one or two insurance companies (e.g. Canada Life or Sun Life)
• No Comparison Quotes: You won't see a list of 10 life insurance companies like you would with an annuity broker, meaning you will recvevied a lower monthly income .
• Not Issued By CIBC: The annuity policy is not issued by CIBC but by an insurance company.

Do Independent Insurance Brokers Offer Better Value?

Yes, independent annuity brokers work with multiple life insurance companies in Canada. They compare annuity quotes giving you more options and potentially a higher monthly income.

CIBC vs Annuity Broker Quote Comparison

Annuity Details:

• Sex: Male
• Age 65
• Amount: $100,000
• Fund Type: Registered
• No Guarantee option selected
• Payments to start in one month

Insurance Company	Monthly Income $ Registered Funds Age 65
BMO Insurance	582.70
Canada Life	538.54
Desjardins Fin.	568.79
Empire Life	540.76
Equitable Life	n/a
Manulife	584.56
RBC Insurance	539.75
Sun Life	551.02

Insurance Company	Monthly Income $ Registered Funds Age 65
Sun Life	551.02

Before Choosing CIBC, Have You Seen a Comparison Quote?

CIBC advisors offer limited choices. We compare quotes from all the insurers to help you get more income. Complete the form to compare quotes from the best insurers like Canada Life, Empire Life, Manulife, Sun Life, etc. and see for yourself.