Questions You Should Ask Before Buying A Life Annuity
Questions About The Annuitant
- Should it be a single life annuity on my life alone, even though my partner/spouse is about the same age?
- Should it be a joint life annuity with my spouse or partner so each is guaranteed an income for life?
- Should the capital be divided between a single and joint life and, if so, in what proportion?
- I am older than my partner/spouse. Should I consider only a single life annuity; perhaps with a guarantee to age 90?
- Should I use all my capital now for an annuity or keep some for a later date?
- How much income will I lose if I delay the purchase for a year?
- Should I wait until I am 71 to buy a registered life annuity?
- Won’t I get more income if I wait at least another year?
Question about the owner of the annuity policy
- As my life annuity will be unregistered, who should be the owner?
- Would it be better to have joint owners?
- Should the beneficiary be the owner?
- Can my child or other relative be a joint owner in order to guarantee a life income for him or her?
- Can a charity be the owner and/or beneficiary?
Question about the guarantee period option
- How long should the guarantee period be?
- Should I have two or more annuities with different guarantee periods?
- Do I need a guarantee period at all?
- What is the income difference for my age, between a zero year, 10 year and a 20 year guarantee?
- What is the advantage/disadvantage of a long term guarantee?
- As I don’t want to take any risks, should I divide my capital between a RRIF and an annuity?
- Will I ever be able to change my life annuity?
- As I may need more income at certain times, should I also buy a RRIF?
Questions about your children
- Should I consider the financial situation of my child or children when buying this life annuity?
- How can my child or children benefit from my annuity payments?
- Should a child or children be made co-owners of my non registered annuity?
Questions on the beneficiaries
- Should my beneficiary be my spouse/partner or my estate?
- Do I need to alter my Will because of this proposed annuity?
Questions on the annuity payments
- Is it better to take monthly or annual payments?
- Is there any reason to delay taking payments?
- Would monthly or annual payment be better for me?
- Can I divert the payments to another person for a certain period of time?
Questions on the annuity quotes
- How can you know which company is offering the best annuity rate?
The Hughes Trustco Group will answer your questions and provide you with a life annuity quote from each Canadian company quoting on your case. We represent all the companies; we do not favour one company over the other.