Accumulation or Deferred annuities - are similar to a guaranteed investment certificate (GIC). They provide a guaranteed rate of return on the original amount invested and it’s backed by an insurance company. With an Accumulation or Deferred annuity, you get the additional benefits of an insurance contract such as bypassing probate, legal and other estate fees on death (for registered and non-registered plans).

Payout annuities - As part of your financial security plan, Payout annuities can provide guaranteed payments to meet your fixed-income needs. A Payout annuity is a financial product that pays you a regular income for a fixed period or the rest of your life.

There are a wide range of Payout annuity types including:

• Single life annuity – provides a level or indexed amount of income for as long as you live.

• Joint and survivor life annuity – provides a level or indexed amount of income for as long as you or your spouse are living.  When one spouse dies, the survivor continues receiving the same income or a reduced income by a given percentage, as chosen at the time of purchase.

• Term certain annuity – guarantees payments for a fixed period of time as chosen at the time of purchase.

For more information on Annuities and how they might be right for you contact Barrons today.