Payment options

Payment types


Level payments

Payment amount remains the same throughout the payment period.

Indexed payments

Payment amount increases yearly by a specified percentage. For funds not from a defined benefit pension plan, the Client selects the percentage increase - from 1-4% - at issue.
Not available for annuities with prescribed taxation or for transfers from defined benefit pension plans that do not provide indexing.

Reducing payments (available on joint life annuities only)

The Client can choose to have payments reduced by a specified percentage of the original payment if one of the annuitants dies. The Client can choose (at purchase) to have income reduce on the death of the annuitant, the joint annuitant or either annuitant. The Client must choose the percentage when the annuity is purchased.
If a guaranteed period exists, we won't reduce the payment until the end of the guaranteed period, even if a death occurs prior to this date.

Integrated payments

A Client can choose to integrate annuity income with government benefits so when the government benefit payments start, the annuity income decreases by the amount of those payments.
Not available for annuities with prescribed taxation. Registered funds are subject to legislative restrictions.

Payment frequency

Clients can choose to receive their payments:

  • monthly, quarterly or semi-annually by direct deposit to a Canadian financial institution only
  • annually by direct deposit to a Canadian financial institution or by cheque.

The Client chooses the payment frequency at issue and can't change it once we've issued the policy.