What is a Life Annuity?
A life annuity provides you with a series of payments in return for a
lump sum investment paid up front to a life insurance company. In return,
the issuer pays you an annuity on a regular basis (monthly, quarterly,
semi-annually, or annually) for the remainder of your life. The amount
of the annuity payment is based on the amount of the lump sum you pay,
your age and sex (and that of your co-annuitant if applicable), the
survivor benefits you choose, the annuity rate in effect at the time
of transfer, the benefit period chosen, indexation, and the joint and
survivor annuity percentage (0 to 100%), where applicable.
Guaranteed Life Annuity
A guaranteed life annuity has a guaranteed fixed payment period
(5, 10 or 15 years). With this type of annuity, even if the annuitant
should die during the guarantee period, payments would continue to
be made to the designated beneficiary for the remaining guarantee
Joint Life Annuity
A joint life annuity will pay the annuitant a fixed amount per month
during the annuitant's lifetime, and upon the annuitant's death, the
full or partial amount of the annuity to the co-annuitant named by
the annuitant for the remainder of the co-annuitant's lifetime. This
annuity may also include a guarantee.
Joint Life Annuity Payable on First Death
The amount payable for a joint life annuity may be reduced on first
death (of the annuitant or co-annuitant); i.e. the annuity will be
paid, in full or in part, to the survivor for the remainder of the
survivor's lifetime. This annuity may also include a guarantee.
The co-annuitant is the person named by the annuitant, at the time the
joint annuity is purchased, who will receive the annuity upon the
death of the annuitant.