How Are Life Annuity Rates Arrived At?

Life annuity rates are a blend of ages and long term bond rates, not current GIC rates. The age factor is predominant. In other words, you can wait, but you then need the time to make up for taking a slightly less payment today. In other words if the payment is $500 today and $550 in 1 year's time, you need 120 months to make up the loss of the missed payments. It is something you need to consider.

Is There Cash Value In A Term Life Insurance Policy?

No,the difference between term life insurance and whole life insurance is
the cash value.

Term life insurance has no cash value;think about it like your car or house
insurance.If your car isn't totaled or your house doesn't burn down,you
need to repeat the payment the next year.

Whole life insurance on the other hand is more expensive as you are,to some
extent,prepaying the premium or building up a savings account from which the
life insurance premium can be paid.

Life Annuity Protection

If I purchase a life annuity or life annuities from a large life insurance company in Canada,what protection do I have for my income and capital?

If you purchase a product from a life insurance company which is a member of Assuris, you are protected by Assuris. If your member life insurance company fails, your life insurance policy will be transferred to a solvent company.

A Life annuity policy that pays a monthly or annual income benefit, is protected under Assuris’ income protection. On transfer, Assuris guarantees that you will retain up to $2,000 per month or 85% of the promised monthly income benefit, whichever is higher. Registered and non registered benefits are protected separately. A joint life policy is protected separately and in addition to the individual lives.

Ownership is not relevant as the protected person is the annuitant ,the individual who is receiving the life annuity benefit.

Is it legal to have two life insurance policies?

Is it legal to have two life insurance policies?

Yes,you may have,at least in theory,as many life insurance policies as you wish.

And it is certainly a good idea to at least review your life insurance policies at each major life change.You may get married,someone dies,a child is born and events like these could lead you to review your existing life insurance policies