Annuities in Toronto, Ontario

A life annuity policy insures you won't outlive your money by guaranteeing payments for life.

toronto ontario annuities

Annuity Terminology

Terms Definition
Types of Annuities Single Life Annuity: Provides a series of fixed monthly income payments for as long as the annuitant lives.
Joint Life Annuity: Provides a series of fixed monthly income payments for both annuitant's lifetimes.
Income Period Until the death of the annuitant or last surviving annuitant if joint life.
Indexing You can choose to index your annuity to inflation
Non-registered: 0-6% Registered: 0-4%
Source of Funds Registered (RRSP, RRIF, LIRA, LIF, RPP, DPSP)
Non registered (savings, chequing account,TFSA)
Minimum Guarantee Period For registered annuities using RRSP/RRIF funds the minimum guarantee is 0 years. For non registered annuities using funds for your savings account can be from 0-7 years depending on the insurance company
Maximum Guarantee Period For registered annuities the guarantee period can not exceed the annuitant's 90th birthday. For non registered funds the guarantee period can exceed the annuitant's 90th birthday however accrual taxation is used.
Minimum Premium $10,000 - $50,000 depending on the insurance company.
Payment Frequency Payments can be made monthly, quarterly, semi-annually or annually.
Taxation Registered: The annuity payments are fully taxable in the year it is received.
Non registered: The capital portion of the annuity payment is not taxable. The interest earned is taxable based on whether the annuity is prescribed or non prescribed (accrual).

Who Sells Annuities in Toronto?

Life insurance companies do not sell annuities direct to the consumer. A life insurance agent or a independent life insurance broker are used to buy annuities.

Ideally it's in the annuitant's best interest to use an independent life insurance agent who specializes in annuities. An independent annuity broker will provide quotes from all the life insurance companies which you can then compare and choose the company with the best income.

Frequently Asked Questions (FAQ)

What is a life annuity?

A life annuity turns your retirement savings into a competitive and secure retirement income, without putting your money at risk. You can receive guaranteed payments that will never decrease and will last a lifetime.

Annuities are ideal for seniors who:

  1. Need their income to last a lifetime, for themselves, their spouse or both lives
  2. Don’t want to take risks with market volatility
  3. Want the guaranteed monthly income to cover basic living expenses through retirement
  4. Are looking for tax-efficient income.

How many types of annuities are in Canada?

There are 3 types of annuities in Canada:

  1. Single Life annuity – guaranteed payments for life.
  2. Joint life annuity – guaranteed payments for two lifetimes.
  3. Term certain annuity – guaranteed payments for a specified period

You can purchase an annuity with registered or non-registered investments:

  1. Registered funds
    • Registered Retirement Savings Plan (RRSP)
    • Registered Pension Plan (RPP)
    • Registered Retirement Income Fund (RRIF)
    • Life Income Fund (LIF)
    • Locked-in Retirement Income Fund (LRIF)
    • Deferred Profit Share Plan (DPSP)
    • Locked-in RRSP/ Locked-in Retirement Account (LIRA)
    • Restricted locked-in savings plan (RLSP)
  2. Non-registered funds
    • Savings
    • Investments

How Are Annuities Taxed?

Tax treatment of life and term annuities depends on source of premium (registered/non-registered), and (for non-registered annuities), on whether the contract meets requirements for prescribed taxation.

1. Registered Annuities

Annuities purchased with funds from a registered retirement savings plan (RRSP), spousal RRSP, registered retirement income fund (RRIF), spousal RRIF, deferred profit sharing plan (DPSP), locked-in plan or pension plan are considered registered annuities. Every dollar paid to the client is taxable as income in the year it is received.

2. Non Registered Annuities

The taxation of non-registered annuities depends on whether the requirements for qualification as a prescribed annuity contract are met. It’s important to note the income payment doesn’t change between prescribed and accrual taxation; just the amount of income that’s taxable each year.

Annuity Rates as of February 5, 2020

The following monthly annuity rates are based on a premium of $100,000.00 of registered funds and with a 10 year guarantee option. Payments will commence in one month.

Single Life Annuity: Male

Company Age 60 Age 65 Age 70 Age 75 Age 80
BMO Insurance 431.40 490.87 563.91 609.79 701.77
Canada Life 412.33 464.09 534.82 621.45 715.77
Empire Life 401.48 453.46 519.43 603.65 709.34
Great-West 412.33 464.09 534.82 621.45 715.77
La Capitale 411.37 470.33 543.41 629.67 719.39
*Manulife n/a n/a n/a n/a n/a
RBC Insurance 430.16 490.40 564.43 622.69 735.24
Sun Life 386.30 460.17 538.61 617.17 706.52

Single Life Annuity: Female

Company Age 60 Age 65 Age 70 Age 75 Age 80
BMO Insurance 396.29 449.04 516.88 558.66 659.25
Canada Life 384.50 427.04 484.65 562.56 653.59
Empire Life 371.90 416.97 477.69 559.67 664.93
Great-West Life 384.50 427.04 484.65 562.56 653.59
La Capitale 368.53 418.45 483.99 569.48 n/a
*Manulife n/a n/a n/a n/a n/a
RBC Insurance 396.55 448.19 516.79 569.39 677.37
Sun Life 362.35 422.16 496.00 576.66 668.11

*Manulife has discontinued external sales of individual fixed annuities.

Request An Annuity Quote

If you live in the city of Toronto, The Hughes Trustco Group ( will provide personal annuity quotes from all the life insurance companies.

Toronto: Annuity Form
Annuity Details
Primary Annuitant
Contact Details

Canadian Life Insurance Companies in Toronto, ON

The following is a list of Canadian life insurance companies licensed to sell annuities in Toronto.

Some of the cities we serve in Ontario

Toronto Barrie Belleville Brampton Brant Brantford
Brockville Burlington Cambridge Clarence-Rockland Cornwall Dryden
Elliot Lake Greater Sudbury Guelph Haldimand County Hamilton Kawartha Lakes
Kenora Kingston Kitchener London Markham Mississauga
Niagara Falls Norfolk County North Bay Orillia Oshawa Ottawa
Owen Sound Pembroke Peterborough Pickering Port Colborne Prince Edward County
Quinte West Richmond Hill Sarnia Sault Ste. Marie St. Catharines St. Thomas
Stratford Temiskaming Shores Thorold Thunder Bay Timmins Toronto area
East York, Etobicoke, North York, Scarborough, York
Vaughan Waterloo Welland Windsor Woodstock

Some of the towns we serve in Ontario

Ajax Amherstburg Arnprior Atikokan Aurora Aylmer
Bancroft Blind River Bracebridge Bradford West Gwillimbury Bruce Mines Caledon
Carleton Place Cobalt Cobourg Cochrane Collingwood Deep River
Deseronto East Gwillimbury Englehart Erin Espanola> Essex
Fort Erie Fort Frances Gananoque Georgina Goderich Gore Bay
Grand Valley Gravenhurst Greater Napanee Grimsby Halton Hills Hanover
Hawkesbury Hearst Huntsville Ingersoll Innisfil Iroquois Falls
Kapuskasing Kearney Kingsville Kirkland Lake Lakeshore LaSalle
Latchford Laurentian Hills Lincoln Marathon Mattawa Midland
Milton Minto Mississippi Mills Mono Moosonee New Tecumseth
Newmarket Niagara-on-the-Lake Northeastern Manitoulin and the Islands Oakville Orangeville Parry Sound
Pelham Penetanguishene Perth Petawawa Petrolia Plympton-Wyoming
Prescott Rainy River Renfrew Saugeen Shores Shelburne Smiths Falls
Smooth Rock Falls South Bruce Peninsula Spanish St. Marys Tecumseh The Blue Mountains
Thessalon Tillsonburg Wasaga Beach Whitby Whitchurch-Stouffville Woodbridge

Canadian Provinces We Serve

List of Canadian provinces and territories

  1. Ontario
  2. British Columbia
  3. Alberta
  4. Quebec
  5. Manitoba
  6. Saskatchewan
  7. Nova Scotia
  8. New Brunswick
  9. Newfoundland and Labrador
  10. Prince Edward Island
  11. Northwest Territories
  12. Yukon Territory
  13. Nunavut
Ivon T Hughes

Speak to an Annuity Expert

Ivon T. Hughes

You can customize your annuity to meet your needs by adjusting the guarantee period, indexing it to inflation or including your spouse in a joint policy. You can compare quotes from all the leading life insurance companies in Canada. Our clients get sound advice and excellent service with no fees to pay.


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