Canadian Cash Back Annuities

Here is a way for a retired person to get a lifetime of secure, guaranteed retirement annuity income. All without having the lump sum purchase price tied up by an insurance company. This type of annuity guarantees to pay any unused capital directly to a beneficiary without probate fees or lawyers involved. Canadian cash back annuities are offered by a limited number of insurance companies.

A Cash Back Life Annuity is the unique concept of purchasing a single or joint life annuity to generate income for one or two person’s lifetime. The annuity can be either registered or non-registered funds. This kind of annuity pays for the lifetime of the annuitant[s]. Should the annuitant[s] die before accumulated payments received by the annuitant[s] add up to the original lump sum used to purchase the annuity. Then the difference between the original lump sum purchase price and the accumulated payments will be paid out as a death benefit to a named beneficiary.

Non Registered Funds

canadian cash back annuitiesShould all of the original capital have been dispensed, a death benefit is no longer available but the same lifetime annuity payments continue to the annuitant[s] if still alive. If the funds used to purchase the single life annuity are non-registered, then the income received from it enjoys low taxation.

Registered Funds

Registered funds unfortunately result in fully taxable income. However, capital is conserved until accumulated payments exceed the amount of the original investment. Note that, even though all capital might have expired, payments continue for the rest of the annuitant’s life.

Compared with traditional income-generating investments, cash back annuities offer distinct advantages. They do even when compared with the most conservative of investment vehicles.

Single and joint life cash back annuities can be purchased with lump sums as small as $10,000. Although most sources of cash back annuities require higher purchase amounts.