Annuities

Annuities offer the security and convenience of a guaranteed income – for life or for a set term of your choice – freeing you from stressful investment decisions. They can be purchased with money from most savings plans and can be used in conjunction with other income plans, like RRIFs, LIFs and Systematic Withdrawal Plans, to round out sources of income in retirement. The regular payment you receive is determined by factors such as age, gender, life expectancy, as well as interest rates, funding amount and type of guarantee.

The Co-operators offers the following types of annuities:

Single-life annuity

This annuity provides the maximum amount of income through fixed, regular payments for as long as you live. This option may not be suitable for individuals who want payments to continue, after death, for a spouse or other beneficiary.

Joint- and last-survivor life annuity

This annuity is based on two lives, providing income for your lifetime and, upon your death, your spouse’s lifetime. Normally, pension plans are set up to provide a retirement income to both the employee and the spouse, so “joint life annuity” must be selected (unless the spouse – and the employee, in certain provinces – signs a spousal waiver). This is also the case for locked-in RRSP funds.

Life with guarantee period annuity

A guarantee period of 5, 10 or 15 years is available for both single-life and joint- and last-survivor life annuities. This option provides a guaranteed income for the longer of either lifetime or the guarantee period. If you die before the end of the guarantee period, your beneficiary will receive the balance of the guaranteed income payments.

Term-certain annuity

This annuity provides fixed, regular payments for your selected term, for a minimum of five years. While this annuity offers stable income for a guaranteed period, it may not be suitable for individuals who expect to live a long time or want to have payments continue for a spouse.