Guaranteed period

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
RRSP, LIRA, RLSP

Life annuity Joint life annuity

Min = 0 yrs
Max = Lesser of:

  • 90 minus annuitant's age (life annuity) or spouse's age, if younger (joint life annuity), or
  • 40 yrs

Non-locked-in RRSP

Life annuity Joint life annuity

Min = 0 yrs
Max = Lesser of:

  • 90 minus annuitant's age (life annuity) or spouse's age, if younger (joint life annuity), or
  • 40 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
The minimum and maximum guarantee period requirements are subject to the selected annuity income and benefits not being materially different from what the pension plan would have paid.

LIF/RLIF/LRIF

Life annuity Joint life annuity

Max = Lesser of:

  • to age 90 of younger spouse, or
  • 40 years

RRIF

Life annuity Joint life annuity

Min = 0 yrs
Max = Lesser of:

  • to age 90 of younger spouse, or
  • 40 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.