Insurance Becomes an Annuity

Save Taxes With A Life Annuity

The last week of October this year saw a large benefit for two or more million pensioners from the Conservative Government.

Keith MacIntyre, a tax partner with Grant Thorton in Halifax was quoted a saying that “it can save retirees a considerable amount of money” and  that “pension income splitting can be a gigantic benefit for people. ”

How to start your calculation

The higher income spouse or common law partner, should assume most or all of the  housing expenses, leaving the lower income partner with more money to invest.

And this action has run on effects. Reducing the income of the lower income partner could reduce or eliminate the clawback of the Old Age Security payments or the age credit for the higher income spouse.

Neither of these benefits should be overlooked. And there can be further tax savings if both partners can claim the pension income credit.

Life Annuity Retirement Benefits

Life annuities from a company pension plan can also be split, no matter the age.

And for those over 65, RRIF and life annuity payments from a RRSP can also be split by filing a joint election form.

So for pensioners it is the real income that is split as opposed to the family tax cut. So if, for example one receives $750 a month and the other $250, they can each receive $500 monthly if they are at least 60 years of age.

Calculation

If all this seems a bit much, we suggest you speak to an accountant; they are the experts.

Insurance Becomes an Annuity

Saving enough isn’t the only worry in retirement

My comments on “Saving enough isn’t the only worry in retirement” by Craig Sebastiano | May 15, 2014  from Benefits Canada.

This article highlights the needs for individuals to look after their own retirement needs.

If a majority of the population is depending on the government for retirement income, then we’re all in great danger. The old shibboleth of having a better pension if you wait till you,re older is trotted out but health is not mentioned at all.

And health should be the major decision=maker of how and when to start your retirement pension.

us annuity vs canadian annuity

Lets look at the differences between US Annuity vs CDN Annuity

us annuity vs canadian annuityIf you live in the United States, buying a annuity can be a nightmare.

And that is because there are so many annuity companies with so many policy variations, that even an expert who works in the field often can’t tell the difference of one annuity from another.
Canadian annuities are not complex. Here in Canada it is simple. Your age coupled with the investment, gives you a fixed amount a year, forever. That’s it, period.
For example take a male aged 65 with $100,000. You will get $6432 a year forever. No complications about interest rates, stock market fluctuations and all the rest.
You can add a partner or a spouse and the payments will only cease at the second death.
Note that the drop of 550 points in the Dow Jones on June 18-20th would not have affected your income.
Insurance Becomes an Annuity

Canadian annuity rates are best in the world?

One of the largest UK papers, The Daily Telegraph, has just released a report “UK retirement vs the best in the world” that says 2 important things about the annuity market in Canada. It compares various statistics from our website LifeAnnuites.com with figures gleaned from other world sources.

Firstly, like the UK but not necessarily elsewhere, pensions are directed to the purchase of annuities but also allow for drawdown products like a RRIF. An annuity guarantees you an income for all your life but a RRIF can be drawn down to zero, leaving you with no income at the end of your life. And here it is important to remember that the difference between an old man and elderly gentleman, is money.

Secondly here in Canada, annuity rates are better, possibly because annuities are issued with less bells and whistles.  In the UK and elsewhere, annuity issuers can differentiate between smokers and non-smokers and those with health problems. All these procedures take time and money spent elsewhere is not available for you.

Insurance Becomes an Annuity

2013 Canadian Best GIC & RRSP Interest Rates

How to get the best GIC & RRSP interest rates in Canada?

Our GIC & RRSP interest rates tables compare the Best Interest Rates in Canada. Canadians who want to invest in Guaranteed Investment Certificates (GIC) or Registered Retirement Savings Plans (RRSP) can choose from the list of the best interest rates from all the Canadian banks, trust companies, credit unions and insurance companies in Canada.

2013 GIC Interest Rates (GIC non-registered)

Best GIC Interest rates as of January 29, 2013

Financial Institution MinimumDeposit Term in Years
1 2 3 4 5
Bank of Montreal Agt S. 1,000 1.150 1.300 1.400 1.600 2.050
Bank of Nova Scotia Agt 1,000 1.450 1.700 1.900 2.200 2.350
Canadian Tire Bank Agt. 5,000 1.350 1.700 1.900 2.000 2.400
Canadian Western Bank 5,000 1.500 1.900 2.050 2.200 2.350
Coast Capital Svgs Agt. 1,000 2.000 2.100 2.250 2.350 2.500
Concentra Fin. Agt Ser. 10,000 1.150 1.300 1.400 1.600 2.000
HSBC Bank Canada Agt. S 5,000 1.550 1.900 2.000 2.200 2.400
HSBC Mortgage Corp. Agt 5,000 1.550 1.900 2.000 2.200 2.400
HSBC Trust Agent Servic 5,000 1.550 1.900 2.000 2.200 2.400
ICICI Bank Canada 1,000 .250 .500 1.000 1.000 1.000
Laurentian Bk Agent Ser 1,000 1.450 1.900 2.050 2.150 2.350
Montreal Trust Agt. Ser 1,000 1.450 1.700 1.900 2.200 2.350
NatCan Trust Agent Ser. 1,000 1.550 1.900 2.050 2.250 2.450
National Bank Agent Ser 1,000 1.550 1.900 2.050 2.250 2.450
National Trust Agent S. 1,000 1.450 1.700 1.900 2.200 2.350
Royal Bank 5,000 1.450 1.700 1.900 2.150 2.300
Scotia Mtge Corp. Agt. 1,000 1.450 1.700 1.900 2.200 2.350
Vancity Savings 5,000 1.650 1.750 2.100 2.150 2.250
AGF Trust 5,000 1.450 1.900 2.050 2.150 2.350
ATB Financial 1,000 1.400 1.550 1.750 1.650 2.000
AcceleRate Financial 1,000 2.050 2.250 2.450 2.600 2.850
Achieva Financial 1,000 2.050 2.250 2.450 2.600 2.850
Advisor’s Advantage Tr. 1,000 1.450 1.550 1.800 2.050 2.200
Alterna Bank 500 1.450 1.750 1.950 2.000 2.300
Alterna Savings 500 1.450 1.750 1.950 2.000 2.300
B2B Bank 1,000 1.450 1.900 2.050 2.150 2.350
Bank West 5,000 1.500 1.800 1.950 2.050 2.100
Boomerang Credit Union 500 1.100 1.200 1.350 1.600 1.900
Caisses Desjardins 1,000 .900 1.200 1.250 1.600 1.750
Canada Life 1,000 .800 1.050 1.200 1.250 1.300
Canadian Western Trust 5,000 1.250 1.350 1.600 1.850 2.200
Community Trust 1,000 1.200 1.550 1.750 1.800 2.050
DUCA Financial Services 500 1.450 1.700 1.900 2.000 2.250
Desjardins Fin. Security 500 1.050 1.150 1.450 1.650 1.850
Dundee Bank of Canada 1,000 1.450 1.700 1.900 2.200 2.350
Effort Trust 5,000 1.600 1.900 2.100 2.200 2.350
Empire Life 500 1.250 1.625 1.875 1.875 2.000
Equitable Life 500 .700 1.750 2.000 1.550 1.600
Equitable Trust 5,000 1.500 1.800 2.000 2.100 2.400
Equity Financial Trust 5,000 1.650 1.900 2.100 2.150 2.250
Fiducie Desjardins 1,000 .900 1.200 1.250 1.600 1.750
First Calgary Financial 500 1.250 1.650 1.950 2.000 2.300
FirstOntario Credit Un. 500 1.600 1.650 1.900 2.100 2.400
General Bank of Canada 5,000 1.500 1.750 1.900 2.000 2.200
Great-West Life 500 1.050 1.300 1.450 1.500 1.550
HomEquity Bank 5,000 1.500 1.850 1.900 2.100 2.500
Home Trust Company 5,000 1.650 1.900 2.100 2.250 2.450
ING Bank of Canada (CFN) 5,000 1.500 1.850 2.000 2.150 2.350
Industrial Alliance 1,000 .900 1.450 1.850 1.900 1.950
Korea Exchange Bank 3,500 1.400 1.700 1.850 2.000 2.150
Libro Financial Group 1,000 1.100 1.600 1.750 1.950 2.100
London Life 10,000 1.050 1.300 1.450 1.500 1.550
MAXA Financial 500 2.050 2.250 2.450 2.600 2.850
MCAN Mortgage Corp. 5,000 1.750 2.050 2.000 1.650 1.950
Manulife Bank 2,500 1.400 1.650 2.000 2.250 2.450
Manulife Investments 2,500 1.550 1.800 1.950 1.950 1.950
Manulife Trust 2,500 1.400 1.650 2.000 2.250 2.450
MonCana Bank of Canada 5,000 1.200 1.500 1.700 1.800 1.900
Outlook Financial 1,000 2.050 2.250 2.450 2.600 2.850
PACE Savings & Credit Un 1,000 1.200 1.500 1.600 1.750 2.100
Pacific & Western Bank 1,000 1.660 1.850 2.050 2.150 2.350
Parama Credit Union 1,000 1.600 1.750 2.000 2.100 2.300
Peace Hills Trust 1,000 1.450 1.850 2.050 2.100 2.250
Peoples Trust 5,000 1.660 1.800 1.950 2.000 2.200
President’s Choice Bank 500 .850 1.300 1.700 1.850 2.050
ResMor Trust 10,000 1.400 1.800 2.000 2.100 2.300
Servus Credit Union 1,000 1.150 1.300 1.400 1.600 2.000
Standard Life 1,000 1.500 1.700 1.875 1.950 2.000
Sun Life – Insurance 1,000 1.300 1.600 1.700 1.850 2.000
Sun Life – Trust 1,000 1.500 1.850 2.000 2.200 2.450
Teachers Credit Union 500 1.400 1.650 2.100 2.350 2.500
Windsor Family C.U. 500 .900 1.300 1.400 1.600 2.100
Your Neighbourhood C.U. 500 1.700 1.850 1.950 2.100 2.350

2013 RRSP Interest Rates (GIC registered)

Best RRSP Interest rates as of January 29, 2013

Financial Institution MinimumDeposit Term in Years
1 2 3 4 5
Bank of Montreal Agt S. 1,000 .010 .010 .010 .010 .010
Bank of Nova Scotia Agt 1,000 1.450 1.700 1.900 2.200 2.350
Coast Capital Svgs Agt. 1,000 2.000 2.100 2.250 2.350 2.500
Concentra Fin. Agt Ser. 10,000 1.150 1.300 1.400 1.600 2.000
HSBC Bank Canada Agt. S 5,000 1.550 1.900 2.000 2.200 2.400
HSBC Mortgage Corp. Agt 5,000 1.550 1.900 2.000 2.200 2.400
HSBC Trust Agent Servic 5,000 1.550 1.900 2.000 2.200 2.400
ICICI Bank Canada 1,000 .250 .500 1.000 1.000 1.000
Laurentian Bk Agent Ser 1,000 1.450 1.900 2.050 2.150 2.350
Montreal Trust Agt. Ser 1,000 1.450 1.700 1.900 2.200 2.350
NatCan Trust Agent Ser. 500 1.550 1.900 2.050 2.250 2.450
National Bank Agent Ser 500 1.550 1.900 2.050 2.250 2.450
National Trust Agent S. 1,000 1.450 1.700 1.900 2.200 2.350
Scotia Mtge Corp. Agt. 1,000 1.450 1.700 1.900 2.200 2.350
AGF Trust 5,000 1.450 1.900 2.050 2.150 2.350
ATB Financial 500 1.400 2.250 1.750 1.650 2.000
AcceleRate Financial 500 2.050 2.250 2.450 2.600 2.850
Achieva Financial 500 2.050 2.250 2.450 2.600 2.850
Advisor’s Advantage Tr. 1,000 .010 .010 .010 .010 .010
Alterna Bank 500 1.450 1.750 1.950 2.000 2.300
Alterna Savings 500 1.450 1.750 1.950 2.000 2.300
B2B Bank 1,000 1.450 1.900 2.050 2.150 2.350
Caisses Desjardins 500 .900 1.200 1.250 1.600 1.750
Canada Life 1,000 1.050 1.300 1.450 1.500 1.550
Canadian Western Trust 5,000 1.250 1.350 1.600 1.850 2.200
Community Trust 1,000 1.450 1.800 2.000 2.050 2.300
DUCA Financial Services 500 1.450 1.700 1.900 2.000 2.250
Desjardins Fin. Security 500 1.050 1.150 1.450 1.650 1.850
Effort Trust 1,000 1.600 1.900 2.100 2.200 2.350
Empire Life 500 1.250 1.625 1.875 1.875 2.000
Equitable Life 500 .700 1.750 2.000 1.550 1.600
Fiducie Desjardins 1,000 1.200 1.250 1.600 1.750
First Calgary Financial 500 1.250 1.650 1.950 2.000 2.300
FirstOntario Credit Un. 500 1.600 1.650 1.900 2.100 2.400
Great-West Life 500 1.050 1.300 1.450 1.500 1.550
Home Trust Company 1,000 1.650 1.900 2.100 2.250 2.450
Industrial Alliance 1,000 .900 1.450 1.850 1.900 1.950
London Life 1,000 1.050 1.300 1.450 1.500 1.550
MCAN Mortgage Corp. 5,000 1.750 2.050 2.000 1.650 1.950
Manulife Bank 2,500 1.400 1.650 2.000 2.250 2.450
Manulife Investments 2,500 1.550 1.800 1.950 1.950 1.950
Outlook Financial 1,000 2.050 2.250 2.450 2.600 2.850
PACE Savings & Credit Un 1,000 1.200 1.500 1.600 1.750 2.100
Pacific & Western Bank 1,000 1.660 1.850 2.050 2.150 2.350
Parama Credit Union 1,000 1.700 1.850 2.100 2.200 2.500
Peace Hills Trust 1,000 1.450 1.850 2.050 2.100 2.250
Peoples Trust 5,000 1.000 1.500 1.750 1.750 2.000
ResMor Trust 10,000 1.400 1.800 2.000 2.100 2.300
Servus Credit Union 500 1.150 1.300 1.400 1.600 2.000
Standard Life 1,000 1.500 1.700 1.875 1.950 2.000
Sun Life – Insurance 1,000 1.300 1.600 1.700 1.850 2.000
Sun Life – Trust 1,000 1.500 1.850 2.000 2.200 2.450
Windsor Family C.U. 500 .900 1.300 1.400 1.600 2.100
Your Neighbourhood C.U. 500 1.700 1.850 1.950 2.100 2.350

 REQUEST INFORMATION

If you think that today’s best interest rates in Canada are too low, you may be interested in an annuity that gives a higher monthly income, sometimes 3 to 4 times as much.

Get your free, no risk, no obligation annuity quote from the best insurance companies in Canada.

Insurance Becomes an Annuity

Canadian Annuity Rates Comparison 2011 to 2013

As we enter 2013, the Democrats and Republicans appear to have made an uneasy peace which bodes not much change is coming for 2013 Canadian annuity rates.

Is that such a great change from 2011 and 2012 where not much change was seen either.

Below are tables showing Annuity Rates Comparison from 2011 to 2013.

2013 Male Annuity Rates

annuity rates canada male single registered 2013

 

 

 

 

 

 

2013 Female Annuity Rates

annuity rates canada female single registered 2013

 

 

 

 

 

 

2012 Male Annuity Rates

annuity rates canada male single registered 2012

 

 

 

 

 

 

2012 Female Annuity Rates

annuity rates canada female single registered 2012

 

 

 

 

 

 

2011 Male Annuity Rates

annuity rates canada male single registered 2011

 

2011 Female Annuity Rates

annuity rates canada female single registered 2011

In examining the returns, it would appear that not much has changed. Those waiting for higher annuity rates to guarantee a higher monthly return are still waiting. Annuity rates depend on a few important factors, all or any of which should not concern the potential annuitants.

What the annuitant needs to be concerned about is their own age and lifestyle. You are not going to live forever and the longer you wait to take your income, the less you will receive. Even if the rates increase, you still need to make up for the payments you did not take and the increase in capital you did not earn.

Annuities in 2013 don’t show  any sign of major change, a little bit up and a little bit down, just like 2011 and 2012. Meanwhile you are getting older and losing valuable income if you don’t move.

You are not alone in waiting in the hope that change will come. We have one client, age 70 with a large amount earning less than 1% per year. He is losing money through lack of return and inflation and has been waiting for the rates to increase since 2010. Each year he has been offered progressively less and he has run out of time to maximize his income. Don’t be like this man.

Obtain your own annuity rate.

 

Insurance Becomes an Annuity

2013 Canadian Annuity Rates

These 2013 annuity rate tables show you the best annuity rates available as of January 1 st, 2013. Some of the top 10 leading annuity providers include BMO Insurance, Canada Life Insurance, Empire Life, Great West Life, Industrial Alliance, La Capitale,  Manulife Investments, Standard Life Insurance, Sun Life Assurance Company and Transamerica Life Canada

To read full article with 2012 and 2011 comparison tables, click the link   Annuity Rates Canada 2013.

The Tables below show the monthly incomes for annuity rates based on a premium of $100,000. Income starts in 1 month.

2013 Annuity Rates: Male | Non Registered

male single Non registered

2013 Annuity Rates: Male | Registered

Male single registered annuity rates as of 2013

2013 Annuity Rates: Female | Non Registered

annuity-rates-canada-female-single-nonregistered-2013

2013 Annuity Rates: Female | Registered

2013 Canadian Annuity Rates

 

 

 

 

 

 

2013 Annuity Rates: Joint | Non Registered

2013 Canadian Annuity Rates

 

 

 

 

 

2013 Annuity Rates: Joint | Registered

2013 Canadian Annuity Rates

Insurance Becomes an Annuity

Cashable Annuities | Cash Refund Annuities

Cashable annuities, cash refund annuities or principle protection all mean the same thing.

Cashable life and term certain annuities are an answer to the increasing demand for flexibility, along with the security of the investment.

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.

Cashable Annuities – This option (also known as a cash refund guarantee) ensures that, in the event that all annuitants pass away on or after the payment start date, a beneficiary will receive a lump sum payment. This lump sum payment is equal to the difference between the total payments made by us and the original investment.

Example of a Cash Refund Annuity
Here is a quote from Manulife’s Principal Protection – This option (also known as a cash refund guarantee).

Annuity Details: joint annuity, male and female aged 65, $100,000 of registered funds with a cash refund option. Manulife Principal Protected Annuity.

To learn more about Cashable Annuities please call us toll free 1-877-842-3863 or email us at info@trustco.ca .

Insurance Becomes an Annuity

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
Insurance Becomes an Annuity

Best Annuity Rate Comparison Tables of 2012

Below are the best annuity rate comparison tables which we prepared on November 2, 2012.

The annuity rates shown below are from registered funds. All annuity rates provided are immediate life annuities. We compare annuity rates for males and females. A joint comparison is also available for your spouse. All the annuity rates are based on monthly incomes with a premium of $100,000 of registered funds. The income payments will commence in one month.

Annuity Comparison Tables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Click here to view the full Annuity Rates Comparison Table 2012 article.