Insurance Investing

Ensuring Income For Life

When planning for your retirement years, the first priority is to make sure you can meet your income needs. You may also wish to consider your longer-term intentions or estate objectives for investment capital. Now, especially with a rapidly growing retirement population, many are coming to realize that some life insurance products such as insured annuities and guaranteed investment accounts (GIAs) are specifically designed to ensure income for life, while being estate friendly.

Gain The Benefits Of Annuities

For people who are retired, or are approaching retirement, an insured annuity is worth considering. As well as providing higher guaranteed income to complement other sources, an insured annuity allows you to preserve your capital for the eventual transfer to your heirs. An insured annuity provides:

• Guaranteed income for life
• Income security through regular income payments
• Distinct tax advantages
• Tax-deferred growth
• Preservation of capital

Get The Rewards Of GIAs

A GIA is very similar to a guaranteed investment certificate (GIC) or term deposit but includes major estate-planning advantages. A GIA is treated as an insurance contract allowing the annuitant/owner to appoint a beneficiary. At the death of the annuitant, the investment becomes liquid, bypasses the estate and goes directly into the hands of the designated beneficiary. A GIA provides:

• Flexibility regarding maturity term
• The ability to designate a beneficiary under the annuity contract to bypass probate (not applicable in Quebec) and reduce costs
• Potential creditor protection, in certain circumstances
• Possible pension income tax credit for those 65 and over
• Competitive interest rates

Connect With CIBC Wood Gundy

To attain the retirement you dream of, your CIBC Wood Gundy Investment Advisor can guide though the decisions you need to make. Contact your CIBC Wood Gundy Investment Advisor, who can introduce you to a qualified Estate Planning Specialist (Financial Security Advisor in Quebec). To find out how we can help you, use our Find An Advisor tool to locate a CIBC Wood Gundy Investment Advisor near you.

The information contained herein is considered accurate at the time of posting. CIBC and CIBC World Markets Inc. reserve the right to change any of it without prior notice. It is for general information purposes only.

Clients are advised to seek advice regarding their particular circumstances from their personal tax advisors.

Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc.

Segregated funds may guarantee up to 100 per cent of your initial investment at maturity (minimum 10 years from issue) or immediately upon the death of the annuitant. Withdrawals made before the maturity dates are subject to the current values of the segregated fund; the actual amount may be higher or lower than the maturity guarantee amount. Past performance of a segregated fund is not indicative of future performance. Please read the Information Folder carefully before investing.