Money Management Newsletter: Insurance
Some ins and outs
This is only an option to an existing investment product, not a product in-and-unto-itself. So, the first thing you need to decide, is whether the primary investment is suitable for your circumstances. Then determine, if combined with your estate planning considerations, is the purchase and the option, going to do the job for you.
Features and benefits
Richard and Joan own a $400,000 Manulife Investment GIC, which they want to leave to their 20-year-old-son, Scott, in the event of their deaths. But Richard and Joan are concerned about Scott's ability to manage this money and would prefer to have their $400,000 investment paid out to Scott over a period of time. After discussing the situation with their advisors, they select a 10-Year Term Certain Annuity Settlement Option on their Investment GIC. Now , Richard and Joan have added a comfort in knowing that a portion of their estates will pass to their son gradually over a 10-Year period after their deaths
Important Notice: Guarantee and or Settlement options will depend upon which annuity you choose. Please speck with your investment/insurance advisor when selecting investments that may affect the nature of your estate plan and any beneficiaries income needs.
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, Fiscal Agents Money Management Newsletter