Here is my comments to an article from the globe and mail. You can read the life annuity article here.
A very good approach,simply explained.
There are always 2 problems with this approach for which you must look out.
Firstly, at these later ages, it may be difficult to get standard cost life insurance.and secondly,do you want to pay that premium? As you are leaving the money to certain beneficiaries,why can,t they pay all or at least some of the premium? I have several cases where the annuity payments are not large, so the beneficiaries are paying the insurance premiums.in fact in one case they are using money that would otherwise go into an rrsp.here the date they will get the payoff is uncertain,but the life insurance proceeds,unlike the rrsp,are non taxable.and probably a lot larger