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Annuities  Critical Illness  Disability (Income Replacement) Insurance  Long Term Care  Term Insurance  Universal Life  Whole Life  

Annuities

When it comes time to stop working, selecting the best possible income options may be the most important investment decision your clients will ever make. Annuities can form an important part of a balanced income portfolio, by taking the guesswork out of investing for income. Unlike other income-producing investment options like bonds or GIC’s, an annuity can guarantee income for your client’s entire life, providing them peace of mind by knowing they will never out-live their savings.

What is an annuity?

Generally speaking, an annuity is like a mortgage in reverse. Instead of a person borrowing money, they invest money with a financial institution such an insurance company. In exchange for this investment, the insurance company makes regular income payments back to the client that contain both interest and principal. But unlike a mortgage that would end after a period of time, annuities can continue to provide income for the entire life of the investor and their spouse. In addition, non registered annuities can offer significant tax advantages for clients. Because the interest income can be averaged over the lifetime of the annuity, there is an attractive element of tax deferral.