Life Annuities
A guaranteed income for life.
A Gift of Certainty in an Uncertain World
Our Guardianship of Assets strategies, which is the third step to achieving total financial freedom, include longevity risk management techniques. We ensure that your income and assets are well-protected, allowing you to focus on growing your wealth for multiple generations without undue worry about your ownself.
Protecting your lifetime income is crucial to maintaining financial security. This step involves safeguarding against the risk of running out of money in retirement specially during the old age.
Meeting the needs of our clients’ longevity risk often involves the use of modern insurance programs not usually available for retail investors that are tailor-made for specific protection requirements. As an independent broker, we are positioned to search the market for the best product mix to meet your specific needs.
Understanding Your Annuity Options
Understanding the variety of annuities available can help you tailor a solution to your specific retirement income needs. The most fundamental distinction is between Life Annuities, which provide guaranteed income for your entire lifetime (addressing longevity risk directly), and Term Certain Annuities, which offer payments for a predetermined number of years. You can choose an Immediate Annuity if you need income to start right away, or a Deferred Annuity to begin payments later. Annuities can also be Fixed, providing unchanging payment amounts, or Variable/Indexed, where payments might fluctuate based on market performance, potentially offering growth but also carrying risk. Further customization includes Joint Life options to cover both you and a spouse, and Guarantee Periods to ensure payments continue to a beneficiary for a set time if you pass away early. Each type and feature involves different considerations regarding security, flexibility, and cost, making personalized guidance valuable.
Types of Annuity Plans Available
The following is a list of some of the different types of annuity plans available to our clients through us.
Life Annuity
Guaranteed income for life. Great for longevity protection.
Joint Life Annuity
Covers two lives most ideal for couples wanting lifelong income security.
Term Certain Annuity
Guarantees income for a fixed period. Good if you want to leave a legacy or bridge to other income.
Deferred Annuity
Income starts later most ideal for those still working or delaying retirement income for tax planning.
Immediate Annuity
Starts paying almost right away. Perfect for instant income need.
Fixed Annuity
Steady, predictable income not affected by markets. Peace of mind.
Variable Annuity
Income fluctuates with investment returns, but can offer guarantees. Allows growth potential with downside protection.
Indexed Annuity
Payments rise with inflation or index performance. Helps keep up with cost of living.
Prescribed Annuity
For non-registered money—provides tax-leveling benefits (stable taxable amount). Great for tax planning.
Impaired Risk Annuity
Higher payouts for those with shortened life expectancy. A fairer option for those in poor health.
Non-Prescribed Annuity
Standard tax treatment with higher taxes early on, lower tax treatment later.
Integrated Annuity
Higher initial income that tapers off when CPP/OAS kicks in. Smooths retirement income needs.
For more information on life insurance in Canada, please visit the Canadian Life and Health Insurance Association (CLHIA).
Annuities Frequently asked questions
A life annuity is primarily designed to provide a guaranteed income stream that lasts for the entire duration of your life. Its core function is to offer financial security in retirement, especially in old age, by mitigating the risk of outliving your savings.
Longevity risk is the risk of outliving your retirement savings due to old age. Life annuities directly address this by converting a lump sum of money into a stream of income that is guaranteed to continue for as long as you live, effectively transferring this risk away from you. By purchasing a life annuity, you transfer both the investment risk and the longevity risk to the insurance company. The insurance company takes on the responsibility of managing the funds and ensuring the guaranteed income stream continues for your lifetime.
Once you purchase a life annuity, you receive regular payments for the rest of your life. This ensures a consistent and predictable income stream, offering peace of mind and stability in your retirement planning.
There are numerous advanced annuity options designed to meet specific needs and financial goals. At Hexavision, the priority is not just choosing a product—but ensuring each solution maximizes the efficiency of your money at work.
Life Annuity for longevity protection.
Joint Life Annuity for couples wanting lifelong income security.
Term Certain Annuity to ensure Guarantees income for a fixed period.
Deferred Annuity for those still working or delaying retirement income for tax planning.
Immediate Annuity starts paying almost right away. Perfect for instant income need.
Fixed Annuity for Steady, predictable income not affected by markets. Peace of mind.
Variable Annuity also called Segregated Funds – the Income fluctuates with investment returns, but can offer investment guarantees. Allows growth potential with downside protection.
Indexed Annuity where the Payments rise with inflation or index performance. Helps keep up with cost of living.
Prescribed Annuity for non-registered money that provides tax-leveling benefits (stable taxable amount). Great for tax planning.
Non-Prescribed Annuity for Standard tax treatment—higher taxes early on, lower later.
Impaired Risk (Age-Rated) Annuity provides higher payouts for those with shortened life expectancy. A fairer option for those in poor health.
Integrated Annuity for higher initial income that tapers off when CPP/OAS kicks in. Smooths retirement income needs.