Annuities in Vancouver, British Columbia
Annuities - Provide Income and Security For Life
|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 Vancouver?
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 also called an income annuity, immediate annuity, fixed annuity or a guaranteed income is a series of regular payments that provides you with steady, guaranteed income, similar to a pension. With a life annuity, you will receive payments for as long as you live. Annuities can be purchased using non-registered or registered funds.
Why Should I Consider Buying An Annuity For Retirement?
- Income For Life: When you purchase a life annuity, you don’t have to worry about outliving your money. Your payments can be guaranteed for as long as you are alive.
- Income Security: There is no market or interest rate fluctuations that will decrease the income you receive each month.
- No Management Decisions: There are no more investment decisions to make once you’ve purchased your annuity.
- Estate Planning Benefits: Payments can be guaranteed to continue to your surviving spouse or other beneficiary for a minimum number of years in the event of your death. In addition, the amount goes directly to your beneficiary and does not have to go through probate.
- Flexible Income Option: You can use your retirement savings to buy an annuity at any time, just before retirement, at retirement or at any time during retirement. And you can convert some or all of your savings. For example, if you need guaranteed income to cover just a certain number of fixed expenses, you can buy an annuity that produces the income level you need to cover these costs alone.
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|
Single Life Annuity: Female
|Company||Age 60||Age 65||Age 70||Age 75||Age 80|
*Manulife has discontinued external sales of individual fixed annuities.
Request An Annuity Quote
If you live in the city of Vancouver, The Hughes Trustco Group (LifeAnnuities.com) will provide personal annuity quotes from all the life insurance companies.
Canadian Life Insurance Companies in Vancouver, BC
The following is a list of Canadian life insurance companies licensed to sell annuities in Vancouver.
- BMO Insurance
- Canada Life Insurance
- Desjardins Insurance
- Empire Life Insurance
- Equitable Life Insurance
- Great-West Life
- Industrial Alliance
- La Capitale
- Manulife Financial
- RBC Insurance
- Sun Life Financial
Some of the cities we serve in British Columbia
|Fort St. John||Grand Forks||Greenwood||Kamloops||Kelowna|
|Nanaimo||Nelson||New Westminster||North Vancouver||Parksville|
|Penticton||Pitt Meadows||Port Alberni||Port Coquitlam||Port Moody|
|Powell River||Prince George||Prince Rupert||Quesnel||Revelstoke|
|White Rock||Williams Lake|
Canadian Provinces We Serve
List of Canadian provinces and territories