What are payout annuities and how do they work?

What are payout annuities?

In exchange for a single lump sum deposit, insurance companies payout annuities provide you with guaranteed income for life or for a specific term (term certain annuity) so you can have peace of mind and the security you need to enjoy your retirement to the fullest.

How many types of payout annuities are there?

In Canada insurance companies offer 3 types of payout annuities.

  1. Single Life Payout Annuity: based on the life of one person.
  2. Joint Life Payout Annuity: based on the lives of two people usually married couple.
  3. Term Certain Payout Annuity: which provides guaranteed payments for a predetermined number of years.

How do you choose the right type of payout annuity?

What companies sell payout annuities?

Here is a list of insurance companies that sell payout annuities in Canada:

  1. BMO Insurance
  2. Canada Life
  3. Empire Life
  4. Great West Life
  5. Industrial Alliance
  6. La Capitale
  7. Manulife
  8. Standard life
  9. Sun Life
  10. Transamerica Life

What are the best payout annuity rates in Canada?

Click here for the Best Payout Annuity rates in Canada.

Benefits of Payout Annuities

  1. Guaranteed income for life
  2. Income security
  3. Tax benefits
  4. Payments can continue to your spouse or beneficiaries
  5. No investment decisions