Beware of Brand Impersonation Emails and Phone Calls: Sun Life will never call or email asking for personal, financial or e-transfer information to purchase a GIC or to settle an unclaimed insurance policy.
A life annuity provides annuity payments as long as the annuitant (or annuitants) are alive. Choosing a guaranteed period for a life annuity or joint life annuity ensures we'll pay a death benefit if income has started and the annuitant or both annuitants die during the period selected. The Client chooses the length of the guaranteed period at purchase and can't change this once we've issued the policy. The longer the guaranteed period selected, the lower the income payments.
If income has started and:
- The annuitant - or in the case of a joint life annuity, the last surviving annuitant - dies during the guaranteed period, we'll pay a death benefit. See “Death benefits” section for details.
- The annuitant - or in the case of a joint life annuity, the last surviving annuitant - dies after the end of the guaranteed period, income payments stop and we don't pay a death benefit.
The source of premium may also restrict the minimum and maximum guaranteed periods available.
Source of premium |
Type of payout annuity that can be purchased |
When income payments must begin (how long guaranteed period can last) |
---|---|---|
Locked-in |
Life annuity Joint life annuity |
Min = 0 yrs
|
Non-locked-in RRSP |
Life annuity Joint life annuity |
Min = 0 yrs
|
Term certain annuity |
Tax legislation requires that the term certain period must equal 90 minus age of annuitant (or spouse, if younger). Terms exceeding 40 years are allowed in order to comply with this rule. |
|
Non-registered1,2 |
Life annuity Joint life annuity |
Min = 0 yrs Max = 40 yrs |
Term certain annuity |
Min = 3 yrs Max = 40 yrs |
|
DPSP |
Life annuity Joint life annuity |
Min = 0 yrs Max = 15 yrs |
Term certain annuity |
Min = 3 yrs Max = 15 yrs |
|
RPP |
Life annuity Joint life annuity |
Min = 0 years Max = 15 years |
LIF/RLIF/LRIF |
Life annuity Joint life annuity |
Max = Lesser of:
|
RRIF |
Life annuity Joint life annuity |
Min = 0 yrs
|
Term certain annuity |
Must be to age 90 of the annuitant or the younger spouse. Could be more than 40 yrs. |
1 Accrual taxation: the age plus the guaranteed period can't exceed 115 years.
2 Prescribed taxation: the age of the youngest annuitant plus the guaranteed period can't exceed age 90.