Annuities in Waterloo, Ontario
A life annuity policy insures you won't outlive your money by guaranteeing payments 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 Waterloo?
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:
- Need their income to last a lifetime, for themselves, their spouse or both lives
- Don’t want to take risks with market volatility
- Want the guaranteed monthly income to cover basic living expenses through retirement
- Are looking for tax-efficient income.
How many types of annuities are in Canada?
There are 3 types of annuities in Canada:
- Single Life annuity – guaranteed payments for life.
- Joint life annuity – guaranteed payments for two lifetimes.
- Term certain annuity – guaranteed payments for a specified period
You can purchase an annuity with registered or non-registered investments:
- 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)
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 Waterloo, The Hughes Trustco Group (LifeAnnuities.com) will provide personal annuity quotes from all the life insurance companies.
Canadian Life Insurance Companies in Waterloo, ON
The following is a list of Canadian life insurance companies licensed to sell annuities in Waterloo.
- 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 Ontario
|Elliot Lake||Greater Sudbury||Guelph||Haldimand County||Hamilton||Kawartha Lakes|
|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
Some of the towns we serve in Ontario
|Bancroft||Blind River||Bracebridge||Bradford West Gwillimbury||Bruce Mines||Caledon|
|Carleton Place||Cobalt||Cobourg||Cochrane||Collingwood||Deep River|
|Fort Erie||Fort Frances||Gananoque||Georgina||Goderich||Gore Bay|
|Grand Valley||Gravenhurst||Greater Napanee||Grimsby||Halton Hills||Hanover|
|Milton||Minto||Mississippi Mills||Mono||Moosonee||New Tecumseth|
|Newmarket||Niagara-on-the-Lake||Northeastern Manitoulin and the Islands||Oakville||Orangeville||Parry Sound|
|Prescott||Rainy River||Renfrew||Saugeen Shores||Shelburne||Smiths Falls|
|Smooth Rock Falls||South Bruce Peninsula||Spanish||St. Marys||Tecumseh||The Blue Mountains|
Canadian Provinces We Serve
List of Canadian provinces and territories