Payout annuities will appeal to you if you’re seeking guaranteed income for one life, two lives, or for a specified period, with protection from market risk. Payout annuities can provide the highest level of guaranteed lifetime income available when compared to other income generating products. Further, there’s no active investment management needed.
If you’re nearing or in retirement, it’s key to ensure that essential living expenses like groceries, housing costs, and medications are always covered for the remainder of your life. A payout annuity helps cover these essential expenses. Once you’ve covered the essentials, you’ll have a better idea of how best to generate lifestyle income in retirement.
Adding a guaranteed period to a life annuity ensures that if you die before the guaranteed period ends, your beneficiary receives a death benefit. You choose the length of the guaranteed period when you buy the annuity.
Choose the type of annuity* that works for you:
- Life annuity – guaranteed income for life
- Joint life annuity – guaranteed income for two lives
- Term certain annuity – guaranteed income for a specified period
*Legislation may affect the type of payout annuity you can buy, depending on the source of the money you use to purchase it.
Insurance GICs, also known as accumulation annuities, that offer you security and protection for your family. Like a regular GIC, they guarantee the principal and the rate of return and can serve as an important component for your savings plan during your working years. All Insurance GICs are easily convertible into an income stream at retirement.
As an insurance contract, Insurance GICs also allow you to name a beneficiary to help avoid the potential cost and delays associated with probate and estate settlement.
The Legacy Settlement Option allows you to customize the death benefit from your Insurance GIC. You can provide a lump sum payment, a steady stream of lifetime income, income for a specified time, or any combination of these options* to beneficiaries.
Types of Insurance GICs:
- Can help balance your need for security and rate of return, providing you with reliable growth and protection from volatile markets. It offers daily interest, 90 day short-term investments as well as 1 to 10 year investment terms. This product offers the feature of successor annuitant. Multiple registration types are available including locked in funds.
- Income Master
- Is an excellent choice as part of your retirement income plan (RRIF/LIF/RLIF). Typically, at this stage in life you want a steady stream of retirement income and the peace of mind that comes with owning a guaranteed interest investment. It offers daily interest and 1 to 25 year investment terms.
- SunSpectrum Accumulation annuity**
- Can help balance your need for security and rate of return and provide reliable growth while staying safe from volatile markets. RIF registration is available in this product and it provides peace of mind by generating a steady stream of retirement income. It offers daily interest, 1 to 5 year investment terms (longer terms available for RRIF up to 25 years).
- SunSpectrum Interest Account (SSPIA) – LIRA/LIF**
- This is an accumulation annuity product that is available for locked-in funds only. It offers daily interest and 1 to 5 year investment terms (longer terms available for LIF up to 25 years).
*Lifetime income or income for a specified time is made possible by an annuity. The annuity must be allowed under the Income Tax Act (Canada). For locked-in funds, the death benefit is paid according to applicable pension law.
**SunSpectrum Accumulation Annuity and SunSpectrum Interest Account (SSPIA) are only available to Sun Life advisors to sell.
Guaranteed investment certificates (GICs)
GICs are one of the safest and simplest investments you can make. GIC rates are guaranteed for a fixed period of time and available through Sun Life Financial Trust Inc. Sun GIC Max and SLF Trust GIC offer flexible maturity dates and a 45-day rate guarantee.
Types of GICs:
- Sun GIC Max and SLF Trust GIC are a good choice for young savers, busy families and those either nearing or enjoying retirement who want to minimize risk and stay safe from volatile markets. Sun GIC Max is not redeemable. It requires you to stay invested until the maturity date, but offers a higher interest rate than the SLF Trust GIC, which is redeemable. For more information, please visit Sun Life Financial Trust Inc.
For more information
If you’re Sun Life advisors: visit ABC > Products > Wealth.
All other financial advisors: visit Sun Life Advisor Site.
Sun Life Global Investments is a trade name of SLGI Asset Management Inc, Sun Life Assurance Company of Canada, and Sun Life Financial Trust Inc. SLGI Asset Management Inc. is the investment manager of the Sun Life Mutual Funds, Sun Life Granite Managed Solutions and Sun Life Private Investment Pools. Sun Life Assurance Company of Canada is the issuer of guaranteed insurance contracts, accumulation annuities (including Payout annuities and Insurance GICs), and individual variable annuity contracts (including Sun Life GIFs).
Sun Life Financial Trust Inc. is the issuer of Guaranteed Investment Certificates (GICs)