An annuity protects you from the risk of outliving your money and helps to cover basic expenses in retirement. In exchange for a lump-sum premium, an insurance company – like Sun Life Financial – guarantees to pay you an income for life or as long as the annuity contract specifies. Your income will be secure from both market and interest rate risks – and, if you buy your annuity with non-registered savings, you could also benefit from tax savings.
An advisor’s job is to help you understand how different products – each with their own features and options – can best meet your individual needs. Talk to your advisor; if you don't have an advisor, find one you're comfortable working with. There’s no cost to talk to an advisor.
To get the most out of the meeting with your advisor, take some time beforehand to think carefully about what you want to achieve. To help your advisor recommend the right products for your needs, it will be helpful if you gather some basic information about your income, assets and liabilities – including your savings, investment and pension plan statements.
Your advisor will use an annuity calculator to help you understand your options and then work with you to complete the paperwork that’s required and ensure your money is transferred. Shortly after making your purchase, you will receive a policy document confirming the details of your new annuity.