Life Annuities Overview
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Life Annuities: A Comprehensive Overview
Summary
A life annuity transforms a lump sum from your RRSPs or non-registered funds into a lifelong income stream. When considering a life annuity, you have various options to explore.
Retirement Income Planning
Many companies offer diverse options to secure your retirement income, allowing you to maximize your pension funds efficiently, whether registered or non-registered.
Factors Influencing Life Annuities
- Interest Rates: The income from life annuities is affected by current interest rates and market conditions.
- Mortality: Your life expectancy and that of your spouse directly impact the annuity income. Generally, the older you are, the higher your income.
- Annuity Options: The initial choices you make, such as a longer guarantee period, can influence your income level.
- Gender: Men typically receive a higher starting income since, on average, women have a longer lifespan.
Life Annuity Options
- Single Life Annuity: Provides income solely for your lifetime.
- Joint Life Annuity: Continues to pay income to your surviving partner upon your death at a pre-determined percentage, typically 100%, for the duration of their lifetime.
- Level Income: Offers a fixed income as agreed upon issuance.
- Increasing Income: Provides income that rises by a fixed percentage annually.
- Guarantee Period: Ensures your income passes to a beneficiary if you pass away within this period.
- No Guarantee Period: Ends income upon death, unless a joint life plan is in place, which continues until the second death.
Payment Frequency
You can choose to receive annuity payments either monthly or annually.
You can find the original non-AI version of this article here: Life Annuities Overview.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.