Saskatoon Directory in our Trusted Saskatoon Financial Services category.
tip on Insured Annuity:
Reaching retirement goals with fixed income is more and more challenging. Why not consider an insured annuity?
The combination of a life annuity and a life insurance contract may bring much higher yield of return than other fixed income products.
· Guaranteed, tax efficient income for life
· Guaranteed death benefit and estate preservation.
· Potential to outperform the after tax rate of return of traditional fixed income investments
Who can benefit from this strategy?
An Insured Annuity can be a strategy to consider for someone over the age of 60, in good health, risk averse, who requires an income from their investments, and wants to leave a guaranteed death benefit to their heirs or favourite charity.
How does it work?
An Insured Annuity works by purchasing a prescribed life annuity contract and a permanent life insurance contract with a death benefit equal to the capital invested in the annuity. Generally, payments received from the annuity are used:
1. to pay the life insurance premium
2. to pay the tax on the annuity
3. to supplement retirement income
At death, the annuity payments typically cease and the life insurance death benefit is paid to the estate or named beneficiary. Both components play an important role.