Term-Certain Annuities

Term-certain payout annuities pay guaranteed income payments for a specified period of time.

If you die before the annuity reaches the end of the term, the beneficiary receives a lump-sum payment equal to the value of the remaining benefit. If your spouse is your beneficiary, he or she may choose to receive the lump sum or to continue receiving payments until the end of the term.

Policies purchased with registered assets are eligible for terms equal to 90 less your age in full years at the time of purchase.

For example, if your age is 65, the term would be 25 years (90-65=25). You can also calculate the term using your spouse’s age if he or she is younger. Term certain annuities are not available for plans where the source of funds is locked-in.

Policies purchased with non-registered funds are eligible for any term from a minimum of 1 year to a maximum of 40 years (or age 95, whichever comes first).