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Canada Sunday, February 26, 2017

 

Term Certain Annuity

What is a term certain annuity?

This type of annuity provides income for a specified period of time, chosen at the time of purchase. Once the last payment is made, the contract expires and no further payments are made.

 

A non-registered life annuity is tax-efficient because only the interest portion is taxable.

 

Pension Income Tax Credit

The interest element of a non-registered annuity, both prescribed and non-prescribed, is eligible for tax credits if the annuitant is 65 years of age or older.

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