Life Annuity products are best for those who are worried that they may outlive their income, or otherwise uncertain how their benefits programs, such as pensions or RRSPs, can provide for them in the long term. A Life Annuity is an annuity product that provides guaranteed payments for the remainder of your life. This type of annuity plan typically ends on death.

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Investing in Life Income Annuities (LIA)

Life Income Annuities allow you to convert retirement funds generally or more likely from an RRIF. This fund is meant for the individuals worried about outliving there retirement income and ensuring there is a sustainable amount of income past the age of 80.

LIA’s should be considered at anytime past the age of 70. This will help you determine the length of time and amount of which would be suitable for your retirement. LIA’s are fixed payments of which are paid as taxable income.

If you are worried about outliving your payments your spouse or beneficiary is able to roll the remaining funds into his/her annuitant. If there are none specified the amounts may be forfeited and lost.

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