Annuity Deadline Approaching for Registered & Non-Registered Annuities

We are fast approaching a deadline for any annuity business you want to do this year.

Annuity Deadline January 1, 2017

While the official cutoff date for annuities to be issued by January 1st, 2017  the practical date is a lot earlier.

All the people who have turned 71 this year and have not bought a RRIF or a registered annuity, turn up in the tens of thousands at year end. You know who you are; you’re waiting for rates to go up or for the stock market to settle down.

Neither will happen. And for your peace of mind you don’t need to worry whether your money will be clogged up and not transferred in time for you to avoid paying tax on all the capital. It has happened and it will happen again to those who do not properly plan.

And on top of all that, the same applies this year to buyers of non-registered prescribed annuities who must annuitize before January 1, 2017  to avoid increased taxation, even if starting the income later.

So this blog is a shot across the bow. If you have any intention of getting an annuity, the time is now. Complete our annuity quote form and we’ll provide a personal annuity illustration.

Thank you,

Ivon T Hughes
The Hughes Trustco Group
Toll free: 877-842-3863

5 annuity examples to help guide you

5 Annuity Examples to Help Guide You

An annuity is a guaranteed stream of payments that will provide you with a regular income for your lifetime. You, nor your spouse if included, can outlive the income.

Below are 5 annuity examples and an interpretation of the annuity illustration provided by 5 annuity companies.

1. Annuity Example of a Single Life Male 

Personal Information
The annuitant is a male aged 68 years old. He is currently retired.

Source of Funds
The annuitant lives in the province of British Columbia and has a RRSP account with TD Waterhouse. He does most of his investment transactions online. He has now transferred his stock into cash to purchase a life annuity.

 General Information about the Contract
The annuitant purchased a single life annuity with $147,000 from Industrial Alliance Insurance. The life annuity will provide a monthly income of $825.44 for his lifetime, he will never be able to outlive the income. The life annuity income will help cover his fixed costs such as food, rent, electricity in his retirement.

Annuity Illustration Example from Industrial Alliance

Company: Industrial Alliance
Type of annuity: Single Life Annuity
Guarantee Period: 5 years
Annuitant: Male, 68 years old
Jurisdiction: British Columbia
Source of funds: RRSP
Premium: $147,000
Monthly Income: $825.44
Annuity Illustration: View and print annuity quote

To view the the rest of the examples please continue reading “5 Annuity Examples to Help Guide You” on our website.

registered funds convert to annuity

Registered funds should be converted into an annuity to provide retirement income

registered funds convert to annuityAs you decide what to do about your retirement income, I thought that I would  bring up some ideas that others in your situation have considered when dealing with registered annuities.
Firstly, this is money where only you and your wife will get the maximum benefit. Any  guaranteed payments remaining after the 2nd death are collapsed into the present-day value,taxed and then any remaining balance is distributed. If you keep waiting to start the annuity payment, the more the income has to increase for you to get an equal benefit.
Secondly, as you near a decision, it is important not to get locked into mutual funds or GIC’s or other investments as penalties can be very expensive.
Lastly advice, independent of any insurance company or bank, will give you the clearest picture of what to do. Objective advice should come from  someone who is able to provide the products you want from any company.
Get your free, no risk, no obligation annuity quote . Exclusive annuity quotes from the best insurance companies in Canada delivered to your inbox.

Requirements for a Payout Annuity Quote

Below is the following  information required for a payout annuity quote.

Annuitant details

  1. Name
  2. Gender
  3. Date of Birth
  4. Province

Annuity details

  1. Purchase date
  2. Income start date
  3. Payment mode (monthly, quarterly, semi-annually, annually)
  4. Source of funds (non-registered, rrsp, rrif, rpp, lira, lif)
  5. Premium amount
  6. Income amount
  7. Annuity type (single life, joint life or term certain)
  8. Guarantee period option (o, 5, 10, 15, 20)
  9. Taxation type (registered fully taxable, non-reg prescribed or non-reg accrual)

Payout Annuity Quote Example

What is a payout annuity?

A Retirement Payout Annuity is an excellent choice. The income is guaranteed because there is no market exposure. Annuities also offer a higher income rate than many other guaranteed income products and tax advantages for non-registered funds. An annuity gives you options that bring versatility to your investments.  For more information on payout annuity.



Manulife Financial Annuity Products

About Manulife Financial Insurance

Manulife provides some of the very best financial protection and wealth accumulation products backed by the financial strength and security of a global leader.

When you insure your family against the unexpected or invest your money for the future, you need a financial services company that is financially secure and able to keep its promises, possibly many years from now. Our high quality investment portfolio, diverse business platform and prudent risk management practices are a few of the reasons why you make the right choice when choosing Manulife Financial. Read more about Manulife Financial.

Product name: Manulife annuities

Issue ages: non registered 0-97, registered 16-60 (18-60 in Qc)

Types of annuities: Single life annuity, Joint life annuity, Term Certain annuity

Rate guarantee: 45 days

Guarantee Period: Registered 0-30 years, non registered 3- 30 years

Premium: minimum $10,000, maximum $2M

Quote: Calculate a Manulife Annuity Quote

Calculator: Manulife annuity calculator


La Capitale, Annuity Products

About La Capitale

For over 70 years, La Capitale Financial Group has had a strong presence in Quebec and across Canada.

We offer quality insurance products and financial services that are adapted to every stage of your life. Guided by the values of mutual aid and solidarity, we work with you in order to build, protect and value what counts for you and your financial security. Read more about La Capitale.

Product name: Immediate annuities

Issue ages: 18-88

Type of annuities: Single life annuity, joint life annuity, term certain annuity

Rate guarantee: 12 days

Guaranteed period: minimum 5 years

Premium: minimum $15,000 maximum $1 M

Quote: Request a La Capitale Annuity Quote


Industrial Alliance, Annuity Products

About Industrial Alliance

Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services.

The fourth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group, which has operations across Canada as well as in the United States. Read more about Industrial Alliance.

Product name: Single premium annuities

Issue ages: registered ages 0-85, non registered age 0-100

Type of annuities: single life annuity, joint life annuity, term certain annuity, impaired life annuity

Rate guarantee: 60 days

Guarantee period: minimum 5 years

Premium: $25/month, maximum $2 million

Quote: Industrial Alliance annuity quote

Calculator: Industrial Alliance annuity calculator


Empire Life Annuity Products

About The Empire Life Insurance Company

The Empire Life Insurance Company (Empire Life) is a subsidiary of E-L Financial Corporation Limited. Our Head Office is located in Kingston, Ontario, Canada and we have service and individual and group sales and marketing centres across the country.

We offer a full range of financial products and services – including personal life insurance, critical illness coverage, investment options, group life and health benefits and group RSP plans.  Read more about Empire Life.

Product name: single premium immediate annuity

Issue ages:  non-registered & registered 35-85

Type of annuities: single life annuity, joint life annuity, term certain annuity

Rate guarantee: 2 days

Guarantee period: up to age 90, locked in funds 15 years max

Premium: minimum $7500, maximum $500,000

Quote: Request an Empire Life annuity quote


Buy BMO Annuity Products

BMO Insurance

About BMO Insurance Company of Canada

Effective April 2009, AIG Life Insurance Company of Canada was acquired by BMO Financial Group and changed its name to BMO Life Assurance Company. It is no longer affiliated with American International Group, Inc.

BMO Financial Group is a highly diversified North American financial services organization that provides a broad range of retail banking, wealth management, and investment banking products and solutions to more than seven million clients and customers across Canada. BMO offers a range of innovative and easy-to-understand insurance solutions that includes: life and disability insurance on mortgages, loans and lines of credit; MasterCard Outstanding Balance insurance; DirectTerm life insurance; Personal Accident Protection, critical illness, and travel insurance. BMO Nesbitt Burns and its predecessor companies have been helping investors meet their financial goals since 1912. Read more about BMO Insurance.

Product name: single premium immediate annuities

Issue ages: Life and term certain non-registered funds  18 – 80

Types of annuities: single life annuity, joint life annuity, term certain annuity

Rate guarantee: non-registered 7 days, registered 45  days

Guarantee period: up to 25 years maximum

Premium: minimum $10,000 , maximum $2,000,000

BMO Quote: BMO Insurance Annuity Quote

BMO Calculator: BMO Annuity Calculator


Buy an Assumption Life Annuity

Assumption Life

About Assumption Life

Established in 1903, Assumption Mutual Life Insurance Company became a mutual  company more than forty years ago. A testament to its undeniable reliability, Assumption Life has stood the test of time and is now one of the largest remaining mutual life insurance companies in Canada. More about Assumption Life.

Product name: Immediate annuity

Issue ages: Single and Joint life ages 18-85. Prescribed term certain 18-85, non-prescribed term certain maximum age 105

Types of annuities: single life annuity, joint life annuity, term certain annuity

Rate guarantee: 21 days; 45 days if transfer from other institions

Guarantee period: Single life annuity, joint life annuity, term certain annuity 5 to 30 years. Pension income 0 to 15 years (can’t exceed age 90).

Premium Minimum: $10,000 maximum $750,000

Calculate: Assumption Life Annuity Quote