1. Beneficiary designations
- Unlike other GICs, insurance GICs allow clients to name a beneficiary on both registered and non-registered assets.
- In Quebec, an insurance GIC allows a beneficiary to be named on all registration types.
2. Pension tax credit - clients deserve a break
- Insurance GICs are eligible for the pension tax credit; those 65 and older can apply.
3. Assuris and CDIC
- Clients are likely covered by CDIC on their current GICs, where insurance GICs have premium/deposit protection provided by Assuris. You can learn more about CDIC and Assuris at www.cdic.ca and www.assuris.ca.
4. Potential creditor protection
- Annuity contracts for both registered and non-registered investments could be exempt from creditors. Federal bankruptcy legislation continues this protection in case of bankruptcy. However, protection is not guaranteed. There is no protection available for other non-registered investments, which do not qualify as life insurance or annuity contracts.
5. Payout annuity option available - create a reliable income stream
- At maturity, an insurance GIC is easily convertible into an annuity income stream for both registered and non-registered investments.
6. Redeemable - just in case
- Insurance GICs are fully redeemable. Clients have access to all or some of the money if they need it unexpectedly. However, it may be subject to a market value adjustment.
An Insurance GIC is an accumulation annuity. You can ask Sun Life Global Investments to start the annuity payments at any time. Unless you tell us otherwise, the annuity payments will start after the annuitant turns age 100.