Cashable life and term certain annuities are an answer to the increasing demand for flexibility, along with the security of the investment.
Up to now,people have invested in GIC’s,not because of the good return but for reasons of security.And for that feeling of security,investors pay a high price in 3 ways.
Firstly there is a low interest rate.Secondly any interest income is fully taxable.And thirdly,investors are locked in for the period chosen.On the other hand,a non-registered annuity will lock you in,but will pay you a far better return based on your age.
And now with this new product,you will get the higher age return income of a life annuity,but with the bonus of being able to cash out if you wish.Life annuities,of course,give better returns the older you are,but as you receive the same income as a non cashable annuity,they,re certainly worth investigating.
And you don,t have to ever use the cashability feature.