For Consumers

What is an annuity?

"You were my last hope and came through, going beyond the call of duty to help me. The intervention on my behalf saved me thousands of dollars"
~ D.P.
DP says thanks

It’s an insurance product you buy to save a significant amount of money and it offers a way to reduce taxes, and/or ensure a steady flow of income.

It's a contract between you and an insurance company. People buy annuities if they:

  • Need to save significantly.
  • Want an investment that reduces taxes.
  • Want to ensure a steady flow of income.

How annuities work

  • You pay either a single premium or make payments for a set period of time in exchange for a future income.
  • They should increase in value and be income-tax free.
  • You can request to receive payments in a lump sum or in periodic fixed amounts.
  • A popular payout option is "lifetime income with 10 years certain." This means the annuity pays a monthly income for the life of the annuitant or for 10 years, whichever is longer.