For your group retirement savings plan participants
Are any of your group retirement savings plan participants retiring soon? If so, they can take out a life annuity that'll provide them with guaranteed income for life.
Types of annuities
- Life annuities: provide income for life. Payments are typically higher, but they end when the retiree dies.
- Guaranteed annuities: provide guaranteed income for life. If the annuitant dies before the end of the guaranteed period, their beneficiaries can choose either to receive the remaining annuity payments or opt for a single lump-sum payment. Because of the guaranteed period, the payment amount is lower.
- Joint and survivor annuities: provide the retiree with income for life. If the annuitant dies before their spouse, the surviving spouse will continue to receive the annuity payment percentage selected when the annuity was purchased. A guaranteed period can be added. Since the payment can be transferred or guaranteed, the payment amount is lower. It also varies based on the spouse's age.
These annuities can be indexed at 1, 2 or 3%.
For defined benefit pension plan sponsors
Sponsors can also insure annuities paid to retirees:
• For investment purposes
• On termination of their plan
In exchange for a single premium, we:
- Handle annuity payments for the plan's retirees
- Deduct the appropriate taxes
- Issue annual tax slips
- Provide customer service
Not sure which retirement income plan is right for you? Check out the Retirement income plan table.
This text is for information purposes only. Refer to your policy for all conditions, exclusions and restrictions.