A Life Annuity is a contract under which a life insurance company will pay a guaranteed monthly income for your life or that of your spouse. The contract can be structured so that payouts run for either as long as you live, until your spouse dies, or until you and your spouse die. The monthly payout is a combination of interest and principal. The full payout is taxed as income if the annuity was purchased with money from an RRSP or RRIF. Part of the payout is tax-free if the annuity was purchased with other money.
Monthly incomes based on a 10 year guarantee and premium of $100,000 of non-registered funds. Payments will commence in one month.
You can read more about annuities from our featured page: Everything you need to know about Life Annuities.
Source: CANNEX Inc
