Here’s a breakdown of how they work:
Payments
You invest a lump sum of money or make regular payments (premiums) into the annuity. In return, the insurance company agrees to pay you a set amount of money periodically, typically monthly, for as long as you live.
Guaranteed Income
This is a key feature of life annuities. Unlike the ups and downs of the stock market, your annuity payments are guaranteed by the insurance company. This can provide peace of mind in retirement, knowing you'll have a steady stream of income.
Some common types include:
Different Types
There are various life annuities to choose from, depending on your needs.
Single life annuity:
Pays out to you for as long as you live.
Joint life annuity:
Pays out to you and your spouse/partner for as long as one of you is alive.
Deferred annuity:
Your money grows tax-deferred until you start receiving payments.
Overall, life annuities can be a valuable tool for retirement planning, especially if you're looking for a guaranteed source of income.
However, it’s important to weigh the pros and cons carefully and speak with a financial advisor to see if a life annuity is right for you.
- info@annuitiesincanada.ca
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- Life www.annuitiesincanada.ca Inc. 1120 Bay Street Gravenhurst, Ontario P1P 1Z9
