Insured Annuities

Higher income for risk-adverse clients.

The insured annuity strategy is especially suitable for those who are between the ages 60 and 85, risk-adverse, dissatisfied with currently low interest rates, and in good health.

It involves the purchase of two contracts: a permanent life insurance policy and a prescribed Life Annuity. You designate a portion of your non-registered capital to be used to generate guaranteed income with which you purchase a Life Annuity. This usually produces a higher income than typical fixed income investments and ensures guaranteed income that you or your spouse cannot outlive. With a Life Annuity, each payment is actually a blend of interest and your original capital. As a result, there is no residual value for your estate when you die.

The Insured Annuity strategy can generate a guaranteed, lifetime net income that is typically much higher than what you can achieve with other fixed income vehicles. As well, by directing capital to named beneficiaries, you can avoid unnecessary estate costs and delays.

The Burak Hannon Brojde Group can help you determine whether an insured annuity is the right insurance strategy for you.