Insured Annuity Facts

What Is An Insured Annuity?

An insured annuity is essentially a prescribed life annuity and a term life insurance policy, purchased together. An annuity provides a guaranteed regular income stream, while a term 100 life insurance policy provides a cash payout upon death. The combination of the benefits provided by these products is ideal for those seeking guaranteed income and the preservation of their capital. An insured annuity pays a higher guaranteed after-tax income for life, compared to most traditional alternatives.

An insured annuity provides:

The highest possible guaranteed income for life.
Income security through regular income payment.
Some distinct tax advantages.
Tax-deferred growth.
Preservation of capital.

How Does An Insured Annuity Work?

Using only a portion of the regular annuity payments, you purchase a level premium term insurance policy equal to the value of the life annuity. The death benefit of the life insurance policy is paid directly to your named beneficiary tax-free, allowing you to preserve your capital for your heirs.

If you are considering an insured annuity, ask yourself the following questions:

Do I want to maximize my income for retirement?
Am I concerned about guaranteeing the safety of my retirement income?
Am I concerned about the safety of my capital for the eventual transfer to my heirs?
How long am I willing to hold my investments?
Would I like to increase my after-tax guaranteed retirement income?

Who Are Insured Annuities For?

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

An insured annuity should be considered as an important component of a larger diversified plan. It is important to discuss the suitability of this strategy with your CIBC Wood Gundy Investment Advisor and one of our Estate Planning Specialists* who can help you determine your retirement and estate planning needs.

To learn more about insured annuities and how they could fit into your investment plans, the following articles are available:

Use our Find An Advisor tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.

* Financial Security Advisor in Quebec.

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.

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.