An annuity is a financial contract available through an insurance company that provides retirement income. We will provide an overview of both a Life Annuity and Term Certain Annuities to Age 90 (TCA 90).

Life Annuity

A life annuity provides payments for life, regardless of the number of years you live. You receive fixed payments, guaranteed for a minimum term that you choose. Compare a life annuity to an insurance policy – instead of you paying premiums for a life insurance policy – the insurance company makes payments to you for as long as you live. Depending upon the type of annuity you purchase, payments may continue to a beneficiary after your death.

You purchase an annuity with funds from your RRSP. In choosing the life insurance company to purchase the life annuity from, consider their financial stability and reputation. You will also find the need to compare levels of income and payment upon death in order to make the best choice.

Term Certain Annuities to Age 90 (TCA 90)

This type of retirement income option pays out the full amount of principal and income eared in regularly scheduled payments by age 90. A TCA 90 offers security along with a degree of investment control. A TCA 90 is designed to provide regular income until you or your spouse reaches age 90. Payments are based upon three factors:

• Age
• Amount Invested
• Rate of Interest earned during the terms of the annuity

In the event of death prior to age 90, your spouse will continue to receive payments or may receive a lump sum dependent upon the terms of the annuity. If there is no spouse at the time of your death prior to age 90, the full value of the annuity will be paid as a lump sum to your estate.

If an annuity is of interest to you, your Credential® Financial Strategies Representative can provide you with your options and provide comparisons to make the right choice.

Contact Us
Credential® Financial Strategies Jo-Ann Spicer CFP FMA EPC 519-742-9998 Click to email jspicer@credential.com Debbie Kinlin-Hynes EPC 519-742-9998 Click to email dkinlin-hynes@credential.com

Your insurance contract will provide details of the coverage available under the plan you choose. Restrictions may apply.

Credential Financial Strategies is a member company under Credential Financial Inc., offering financial planning, life insurance and investments to members of credit unions and their communities. ® Credential is a registered mark owned by Credential Financial Inc. and is used under licence.