Don Maycock...advising you to and through retirement!

Annuity Update – December 2020

Annuity Update - December 2020

In September 2020, I began a quarterly report on "Annuities". The original article can be found by clicking on this link.

Methodology

Every three months, I update the default annuity quote (using the Cannex system). The default client is as follows.

  • 65 year old male
  • invests in a "life annuity" using $100,000 from an RRSP
  • invest in the annuity on December 1, 2020
  • begins receiving monthly payments for life beginning Jan 1, 2021.
  • chooses a "10 year guarantee period" This option means should he pass away before the 10 years of payments are made, the "beneficiary" will get the balance of payments as a lump sum commuted value.

 

What's changed in three months?

The default annuity increased the payment by  $9.44 per month or 0.11% as compared to September 1, 2020. See table to the right. The payout rate of $486.26 per month represents a 5.84% annual payout.

 

Income Annuity Summary for December 1, 2020

 

Featured Annuity Provider - Equitable Life

Equitable Life is one of the seven primary annuity providers in Canada that I work with. While not a household name to many it has been in existence since 1920.  They are a member of Assuris. Assuris is the not for profit organization that protects Canadian policyholders in the event their life insurance company fails. Details about Assuris' protection are available at www.assuris.ca.

 

Equitable Life offers many different options for annuities. You can download their annuity brochure by clicking on this link. Equitable 1244-Payout-Annuities-Client-Brochure-(2015-03-10)

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The major life annuity providers in Canada are as follows.

  • BMO Insurance
  • Canada Life
  • Desjardins Financial Security
  • Empire Life
  • Equitable Life
  • RBC Life Insurance Company
  • Sun Life Assurance Company of Canada

How I Can Help

Life annuities must be purchased by a life licensed insurance agent.  I am able to service investors across Ontario Canada and we don't have to meet in person one-on-one (read about my process here). If you would like to know what an annuity might pay in your situation, please click here to open the confidential form to request your custom Income Annuity Survey.

 

To learn more about annuities, enter your first name and email in the green box on this page. You'll receive a series of short emails with more tips, information and education.