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Are Insured Annuities Right for Oceanside Residents?

Is an insured annuity right for you?

When you purchase a life annuity and a term 100 life insurance policy together, the result is called an insured annuity. The annuity provides a guaranteed lifetime income stream and the life insurance policy provides a tax-free cash payout to your beneficiaries upon your death. The annuity generates the cash flow to pay the life insurance premium and taxes, as well as provide a guaranteed, regular and higher income stream to yourself.


In these times of low GIC (Guaranteed Investment Rates), this option can provide tax advantages, tax-deferred growth and the highest possible guaranteed income for life. If you have invested in GICs only over the last few years, you will have seen your annual return decrease. This may have made it more difficult to use the interest payments only for cash flow, and you may have had to access some principal. If you are living off the interest, and wish to protect your capital for your heirs, this could be the perfect option for you. The main disadvantage of the insured annuity concept is not being able to access the lump sum of money you use to buy the annuity, and, you must be able to get approved for life insurance.


The solution is not using all of your capital to purchase the annuity, thereby achieving all of your goals: increasing your cash flow, having available funds ‘in case’, and, preserving your legacy.

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HollisWealth® is a division of Industrial Alliance Securities Inc. a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

This information has been prepared by Carol Plaisier Investment Advisor for HollisWealth®, a division of Industrial Alliance Securities Inc. and does not necessarily reflect the opinion of HollisWealth®. The information contained in this website comes from sources we believe to be reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces where she is registered. For more information about HollisWealth®, please consult the official website at ww.holliswealth.com.

Insurance products are provided through Hollis Insurance. Only services offered through HollisWealth®, a division of Industrial Alliance Securities Inc., are covered by the Canadian Investor Protection Fund.