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    Categories: Retirement

What is an annuity guarantee period?

Annuity Guarantee Period – Life annuities are guaranteed for the life of the annuitant or co annuitant; you cannot outlive the annuity payments. And the extra feature of a guarantee period means that you can ensure that someone gets a benefit if you die early.

  • For non-registered funds: a named beneficiary has the choice of continuing the guaranteed payments or receiving a lump sum payment. An estate can only receive the present value of the remaining guaranteed annuity payments.
  • For registered funds: A spouse can receive the balance of the guarantee payments or receive the present value of the remaining guarantee payments as a lump sum.  Otherwise a beneficiary  receives the commuted value.
Posted by: Phil Barker: Phil is a leading expert in life annuities in Canada. His website Life Annuities.com is a recognized authority on annuities. Recently, he's been redefining how annuities are sold in Canada.