A secure source of retirement income
With medical advances and healthier lifestyle choices, people are living longer – and are looking for dependable sources of income during their retirement years. Annuities can be an ideal solution.
What are income annuities?
With income annuities, you make a lump sum premium payment to an insurance company. In return, the company guarantees to pay you a certain amount for a given period of time – either for a specified number of years or for as long as you live.
Unlike traditional investments, you don’t have to worry about managing your investments or the ups and downs of the market since your payments are guaranteed.
You may want to consider a life annuity if:
- You’re a Canadian looking for a source of guaranteed lifetime income, typically for retirement
- You’re interested in supplementing other sources of guaranteed lifetime income such as Canada Pension Plan (CPP), Old Age Security (OAS) or a defined benefit pension
- You want an “income floor” to ensure you have enough guaranteed income to pay your basic essential living expenses
Income Annuity options from BMO Insurance:
Single Life Annuities
- Provides income for as long as you live
- If you choose a guaranteed period on your annuity, your income payments will be guaranteed for the selected number of years
- If you die during the guaranteed period, your beneficiary will receive a death benefit
- Buy an income annuity between $10,000 and $500,000 (non-registered) / $1,000,000 (registered).
Joint Life Annuities
- Provides income for as long as you or your spouse lives
- If you choose a guaranteed period on your annuity, your income payments will be guaranteed for the selected number of years
- Buy an income annuity between $10,000 and $2,000,000
Term Certain Annuities
- Provides a specified number of guaranteed income payments, from three to 25 years
- If you die before all the specified payments have been made, your beneficiary will receive a death benefit
- Particularly useful if you need a steady stream of income for a specific length of time
- Buy an income annuity between $10,000 and $2 million
Registered and Non-Registered Annuities
- Purchase the right annuity depending on whether your funds come from a registered or non-registered plan
- Annuities purchased from RRSPs, locked-in RRSPs, RRIFs, LIFs or pension plans are considered registered annuities
- For registered annuities, all annuity income paid out in a calendar year is taxable to the owner in the year the payment is made.
- Non-registered annuities are purchased with money that has not received the tax sheltering advantages of an RRSP or RRIF
- If your annuity qualifies, we can issue a non-registered annuity on a prescribed tax basis which provides for level taxation over your lifetime
- Buy an income annuity between $10,000 and $2 million
You can purchase this plan by contacting your independent Insurance or Investment Advisor.
or
We can help you find one in your area.
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Insurer: BMO Life Assurance Company
Full details, terms and conditions are available on request.
Insurance benefits are tax-free payments under current legislation.