Payout annuities

Retire what it meant to be retired

You're close to retirement. You've worked hard and you plan to enjoy it. But this isn't your parents' retirement. You want to stay active and focus on what you really want in life. And with a life annuity from Sun Life's Money for Life retirement products, you can do just that.

A life annuity is designed for people who want to convert some of their savings into a guaranteed income stream for their entire life. We also offer term certain annuities that provide an income for a set period of time.

Dinner at four, bed at nine? Try dinner at nine, bed at four.

Trade in the notion of an early bird special and cut a rug. You'll probably enjoy nights out with friends and family more than an early dinner – or an early bed time. A life annuity will help take care of your basic expenses so you can focus on the things you enjoy.

It's part of an easy, worry-free solution to your retirement income needs and can be the best way to maximize your guaranteed income.

How annuities work

  1. Use some of the money you've saved for retirement to buy an annuity from an insurance company, like Sun Life Assurance Company of Canada.
  2. Receive income for the rest of your life (or the period you choose), just like a paycheque during retirement.

You can buy different types of annuities:

  1. Life annuity - provides income payments for as long as you live. You have the option to choose a guaranteed period. If you pass away before the end of that period, your beneficiary receives a death benefit.
  2. Joint life annuity - provides income payments for as long as either you or your spouse (or person of your choice) is alive.
  3. Term certain annuity - provides income payments for a specified period of time. If you die before all the payments have been made, a death benefit is paid to a beneficiary.

How a life annuity can fit into a financial plan

These are some reasons why you might want to buy a life annuity, rather than a Registered Retirement Income Fund (RRIF) or Life Income Fund (LIF):

  • You don't want to risk outliving your savings
  • You want a guaranteed income to cover fixed expenses
  • You don't want to make investment decisions

An annuity can provide an income for life or for a specific period of time. It can play a valuable part in your financial plan, providing a guaranteed income in your retirement.

You may have other income products contributing to your overall cash flow that may fluctuate, but annuities will give a predictable and guaranteed amount.

Sample contracts

If you're interested in reading examples of text that can appear in a policy, you can find it below. Please keep in mind as you read that not all the provisions you see apply to every policy. It is merely for your reference. When we issue a policy, it governs the legal relationship between us and the client. An actual policy can have provisions that are somewhat different from those that you've read here.

Learn more about Sun Life's annuity products by reading this brochure [PDF, 4 pages, 859 kb] and client guide [PDF, 11 pages, 217 kb] or talk to your Sun Life advisor today. Need an advisor?

You've lived life by your rules, now retire by them too!