Annuities

An annuity is the payment of a regular income by a life company to an annuitant in exchange for a lump sum either for life or shorter periods. Annuities are typically used for retirement pensions and the individual receiving the annuity is known as an annuitant. Some different types of Annuities are:

• Term Certain or Fixed Term Annuities pay guaranteed income payments for a specified period of time. If you die before the annuity reaches the end of the term, the beneficiary receives a lump-sum payment equal to the value of the remaining benefit. If your spouse is your beneficiary, he or she may choose to receive the lump sum or to continue receiving payments until the end of the term.
• Guaranteed Life Annuities can be single or joint. Single Life annuities pay a periodic income as long as the annuitant is alive. Joint Life annuities pay out as long as one of the two joint annuitants is alive. Annuities can be purchased with registered funds from individual RRSPs, locked-in RRSPs, Pension Plans, or Deferred Profit Sharing Plans. Life annuities can also be purchased with non-registered funds.
• Impaired Annuity is essentially a conventional annuity that provides a higher level of income to the purchaser. To qualify for an impaired annuity, the purchaser’s state of health or medical history must be of such a state that their life expectancy is lower.
   
  There are many conditions that would allow a person to benefit from better annuity quotes including diabetes, cancer, and high blood pressure. Even lifestyle choices such as being a regular smoker or being overweight might enable you to get the best annuity quotes through an impaired annuity purchase. Qualifying conditions could include: diabetes, cancer, high blood pressure, a liver condition, heart attack, high cholesterol levels, and Parkinson’s disease.