Accumulation annuities (AAs)
Accumulation annuities (AA) are a kind of guaranteed investment only offered through the insurance industry. They are very similar to GICs, but because they are offered by a life insurance company they have different guarantees, and the added benefits of a beneficiary designation and potential creditor protection.
With an AA, you can start with a lump sum or make periodic deposits at regular intervals, or on a flexible payment basis. The value within the annuity grows (accumulates) as deposits are made and as it earns interest. You can hold an AA as part of a registered or non-registered savings or investment plan. You are guaranteed to receive a set interest rate over a predetermined term, and your investment is protected by specific insurance legislation.
You may not have heard of this investment option, but accumulation annuities offer added advantages for people thinking of estate planning.
Estate planning advantages
Usually, only registered investments like RRSPs and pension plans, let you name a beneficiary. But a Sun Life Financial accumulation annuity lets you name a beneficiary and avoid the trouble and expense of estate and probate fees, in case you were to die. If your spouse is named as your beneficiary, there are even more advantages (which an advisor can explain).
Potential creditor protection
If the beneficiary you've named qualifies, accumulation annuities are generally protected against seizure by creditors. This can be a big advantage for business owners and professionals wanting to protect against an unexpected lawsuit or bankruptcy.
Security and safety
Our accumulation annuities are backed by:
- The financial strength of Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.
- Assuris, to limits it sets. Sun Life Assurance Company of Canada is a member of Assuris. For information about this protection, visit www.assuris.ca.
You can make monthly contributions as low as $50 ($25 for juveniles) or make a lump sum payment any time.
Choose from a variety of investment terms, either daily interest investment, or guaranteed interest investments.
Fixed terms, or you choose the end date
Available terms are 1 to 10 years, however you can also choose a specific date if you prefer.
45-day rate guarantee
You can lock in your interest rate up to 45 days before you deposit your money.
Unlike many guaranteed investments, our accumulation annuities are fully redeemable. That lets you get all or some of your money if you need it unexpectedly. There may be penalties.
Competitive interest rates
An advisor can give you our current rates.
Sample policy pages
- SunSpectrum Interest Account - Deferred Annuity - RSP/LIRA/Locked in RSP [PDF, 2 pages, 512 kb]
- Accumulation Annuity - Registered [PDF, 2 pages, 520 kb]
- Accumulation Annuity - Non-registered [PDF, 2 pages, 512 kb]
- Accumulation Annuity - Tax Free Savings Account (TFSA) [PDF, 2 pages, 512 kb]
- Superflex - Registered [PDF, 3 pages, 525 kb]
- Superflex - Non-registered [PDF, 2 pages, 215 kb]
- Superflex TFSA [PDF, 2 pages, 514 kb]
Ready to buy?
Find out how an accumulation annuity fits into your plan.