Contracts that guarantee income, often for an individual's lifetime, in exchange for a lump sum or periodic payment. Annuity contracts have a number of standard variants, including deferred, fixed, immediate, or variable.
Series of payments of a fixed amount for a specified number of years.
Annuities are contracts sold by life insurance companies. In their simplest form, one pays a sum of money (either a lump sum or a series of payments) and the insurance company makes periodic payments to the policy holder, beginning on the date contracted and continuing for the rest of the insured's life. Unlike mutual funds or unit trusts, variable annuities have insurance provisions and guarantees to preserve the value of the principal paid into the annuity. They also generally carry higher fees than mutual funds.
An agreement whereby an insurance company pays an individual a regular income for life in return for a lump sum of money. The amount of regular income offered by the company depends on the individual's age, sex and health as well as the size of the lump sum and the basis on which the income is to be paid.
A tax-deferred product that mixes features of an investment and an insurance policy. There are generally two types- fixed annuities (pay a fixed rate of interest) or variable (your return is not guaranteed but you have freedom to choose how your money is invested). Among the advantages: unlike a 401(k) or IRA, there’s no dollar limit on how much you can invest. Among the disadvantages: annuities typically carry relatively high fees and penalties.
A type of insurance, usually bought in a lump sum, that guarantees a regularly scheduled payout commencing on a specified date.
are sums of money payable each year.
An investment option where you receive a steady monthly income (generally for life) in exchange for a lump sum from your RRSP, RIF or LIF. Asset Allocation A description of the major categories of investments your portfolio is invested in. Generally 90% of portfolio returns are attributable to the decision as to how much is invested in: - Cash, Bonds, Canadian and International Equities As a rough rule of thumb we recommend starting with your age as a percentage in bonds. Then use a tool like the Scotia Investment Selector and our professional advice to tailor the allocation to match your personal profile. Visit the Scotiabank website for more information on Asset Allocation
Annuities provide the assurance of a guaranteed retirement income for a specified period. You can depend on receiving a regular income at the same time each year, and there are no more investment decisions to be made.
An annuity is an investment that you make, either in a single lump sum or through installments paid over a certain number of years, in return for which you receive a specific sum every year, every half-year or every month, either for life or for a fixed number of years.
An Annuity in essence is an investment you make through your insurance carrier. The basic way it works is that you give so much money to your provider as an investment. Once you reach a certain age you may receive regular payments. Payments either continue until one passes on or if determined ahead of time, may be allotted to beneficiaries for a certain amount of time. Annuities are most popular and practical for those nearing retirement age.
See Fixed Annuities, Variable Annuities.
A tax-deferred fixed annuity is an insurance contract that provides a way for long-term investors to set aside money for potential growth completely tax-deferred until it is withdrawn. Annuities can also provide various income options, up to and including guaranteed income payments for life. A variable annuity allows investors to choose from several investment options. Unlike a fixed annuity, you decide how your annuity assets are allocated among the various subaccount options. You can choose to have your money allocated to stock or bond portfolios, ranging from aggressive to conservative. You also have the ability to transfer among portfolios tax free as your objectives and market conditions change. back to the top