Should you Add Indexing to Your Life Annuity?

To hedge against future inflation, is it a good idea to add inflation protection to your life annuity. This kind of life annuity with inflation protection is called an indexed annuity. There are currently no Canadian life insurance companies offering an indexed annuity with consumer price index protection. For those companies that offer it, annuity indexing is limited to a range of 1% to 5%. Most requests for indexing that I receive have specified 2% so it appears that the common belief is that expected inflation right now is in that range.

Should indexing be something that you feel you would like to have added to your annuity, you need to talk to me first. Call John Beaton at 1-800-667-8818.