We'll issue a policy only if the policyholder and annuitant(s) are Canadian residents. We’ll make an exception if the policyholder has an existing Sun Life Financial policy with a contractual right to purchase a payout annuity.
- Registered (including locked-in funds): ages 18 to 100*
- Non-registered: ages 0 to 100*
*Subject to legislation.
- Minimum amount: $5,000 (combined total from all sources)
- Maximum amount: $5 million*
*Applications with premiums over $5 million are subject to review. Special pricing may apply.
- Registered retirement savings plan (RRSP) - must be a term certain to age 90
- Registered retirement income fund (RRIF) - must be a term certain to age 90
- Deferred profit sharing plan (DPSP)
- Non-registered funds
Payment deferral periods
Payments may be deferred for a maximum of 10 years, subject to restrictions based on the source of premium.
- 3-40 years, subject to restrictions based on the source of premium
- Monthly, quarterly, semi-annually or annually
- Level payments. Payment amount remains the same throughout the payment period.
- Indexed payments. Income increases yearly by a fixed percentage. You select an increase between 1% and 4% at purchase. Not available for prescribed annuities.
- Integrated payment. Annuity income decreases when CPP, QPP or OAS payments begin. Not available for prescribed annuities.
- Registered funds are subject to legislative restrictions.
- Registered. Income from an annuity purchased with registered funds is fully taxable to the policyholder in the year it's received.
- Non-registered. Only a portion of the income from an annuity purchased with non-registered funds is taxable. The amount of tax and when it is payable depends on the tax treatment the annuity qualifies for.
- Withholding tax. Canadian withholding tax is mandatory for annuities purchased with RPP (locked-in and non-locked-in), LIF or DPSP premiums.
Death benefits depend on whether income has started and the source of premium.
A payout annuity cannot be partially or fully surrendered and has no cash surrender value.