|
|
 |
 |
There are two main types of annuities: immediate and
deferred. Deferred annuities are purchased over a period of time with either
a single payment or series of contributions and accumulate to an amount that is paid back to you later.
Immediate annuities are the opposite: you provide a lump sum of money and
the annuity provides you with regular payments of income for a period of
time.
Deferred annuities
Deferred annuities may suit individuals who are saving now and want the safety of a
guaranteed rate of return.
You choose how often you want to contribute: monthly, annually or
occasionally. You can contribute to a deferred annuity within a Registered
Retirement Savings Plan (RRSP) and the contributions up to specified limits
are tax-deductible and the accumulation inside the plan is also
tax-deferred*. You also have an option to contribute to an annuity on a
non-registered basis.
At Foresters, your net premiums can be invested in a Daily Interest Account
or one of six Guaranteed Income Accounts. The larger your original deposit
and the longer your term, the higher your interest rate.
Immediate annuities
Immediate annuities are also
called a Single Premium Immediate Annuity (SPIA). With immediate annuities
you provide a lump sum of money and the annuity provides an income stream
immediately. You can choose how often you want to receive your income
payments: monthly, quarterly, semi-annually or annually.
Immediate annuities suit people who are already retired and want to fix the
amount of income they will have every month. An SPIA is an important RRSP
maturity option. They are also suitable for ensuring regular income from the
proceeds of life insurance.
|
Email this Page » Print this page » |
|
|
|
for Americans
