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.