Pros & Cons of Life Annuities

pros and cons life annuities
Infographic: Pros and Cons of Life Annuities

The Pros of Annuities

  • Simple
  • A life annuity ensures you do not have to worry about stock market failures.

  • Life Income
  • Annuity payments are for life.

  • Tax Advantages
  • You receive a tax advantage when you use non-registered funds.

    Personal Pension Plan

  • Annuities can create a pension for those without pension plans.

The Cons of Annuities

  • Age Disparity
  • Lower payments for joint annuities.

  • Longevity
  • Longevity could affect the amount of payment.

  • Multiple Companies
  • Need to split capital to obtain 100% income guarantee.

  • Commmitment
  • You cannot change the terms of annuity.

Ivon T Hughes

About the Author

Ivon T. Hughes

Ivon T Hughes is a leading expert on life annuities in Canada. His website LifeAnnuities.com has been a recognized authority on Canadian life annuities since 1972.

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Ivon T. Hughes - Annuity Broker

The Hughes Trustco Group | Website: LifeAnnuities.com | Email: info@trustco.ca | Toll Free: 877-842-3863