Funding
The Single Premium Immediate Annuitant may be funded with non-registered or registered money.
Payments may begin immediately or be deferred up to 1 year. The amount of the income payment will vary depending on the type of annuity selected and the features chosen.
The annuitant has the option to pay a higher premium and guarantee a minimum number of payments are made.
Income Period
Until death of annuitant (or last survivor if joint).
Optional Guarantee Periods
- 0 year guarantee ( no guarantee)
- 5 year guarantee
- 10 year guarantee
- 15 year guarantee
- 20 year guarantee
- Maximum guarantee (up to age 90)
Maimum Guarantee Period
For
Non-registered Funds
Number of guaranteed payments cannot exceed beyond the annuitant's 90th birthday
For Registered Funds
Number of guaranteed payments cannot exceed beyond the annuitant's 90th birthday
Issue Ages
Non-registered funds issue ages 18 to 80
Registered funds issue ages 18 to 80
Payment Frequency with Direct Deposit
- Monthly
- Quarterly
- Semi Annually
- Annually
Death Benefit
Single Premium Immediate Annuity purchased with Registered and Non-Registered funds: If death of annuitant (or both annuitants in case of a joint annuity) occurs before the first income payment is made, the single premium is paid to the beneficiary, without interest.
Taxation
Registered Funds
The annuity payment is fully taxable in the year it is received.
Non-registered Funds
The capital portion of the annuity payment is not taxable. The interest earned is taxed based on whether the annuity is prescribed or non-prescribed annuity.
Prescibed Annuity/Non Prescribed Annuity
Under a prescribed annuity a level amount of interest is taxable each year. It is calculated on a straight-line basis.
Under a non-prescribed annuity the interest income is calculated on a amortized basis resulting in a larger portion of the payment being taxable in the early years and a lower amount in the later years.
 Single Premium Immediate Annuity Quote
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