Special annuities

Integrated annuity

An integrated annuity may appeal to Clients who want to bridge the income gap between early retirement and the start of CPP or QPP benefits, OAS or payments from an employer pension plan.

A Client can choose to integrate annuity income with government benefits when the government benefit payments start, the annuity income decreases by the amount of those payments.

We calculate the income from an integrated annuity using the amount of government benefits applicable when the Client purchases the annuity. If the amount of CPP/QPP or OAS increases or decreases before the government benefits begin, the annuity income won't increase or reduce as a result of the change in the benefit amount.

Registered annuity

  • RRSP, locked-in RRSP, RRIF, LIRA, or RLSP
    • Integrated annuity income amount can be up to the value of OAS income.
  • Can't be reduced with the onset of CPP or QPP income.
  • RPP, LIF, RLIF, LRIF
  • Integrated annuity income amount can be up to the combined value of OAS and CPP or QPP income.

Essential Care Annuity

(aka impaired, age-rated or enhanced annuity)

We'll consider issuing an impaired life annuity for an annuitant with a life-shortening illness or condition. This can result in lower premium or higher income than for someone of the same age and gender without a life-shortening condition. Only life annuities can be impaired annuities; term certain annuities don't qualify.

Limits/minimums/maximums

Requirement

The Client must be underwritten by Sun Life Financial underwriters. The Client must:

  • have survived with the condition for two years before applying for the annuity.
  • Applies for most impairments - in some cases (e.g. heart attack or some cancers it could be less than two years), and
  • be expected to survive for two years once they have applied for the annuity.

Maximum issue age (before age rating)

Age 75

Premiums

Minimum - $10,000 Maximum - $5 million

Guaranteed period

Minimum - 5 years (life and joint life annuities)

Maximum - Subject to restriction based on source of premium

Number of impaired annuitants (joint life annuities)

One or both annuitants can be impaired

Age rating

Minimum - 4 years Maximum - 20 years

Qualifying health impairments

The impairment should be severe, permanent, or progressive and have severely affected life expectancy. Being declined for life insurance doesn't automatically qualify an applicant for an Essential Care Annuity.

Health impairments that don't  qualify:

  • temporary impairments,
  • impairments that can be easily controlled with medication,
  • impairments that diminish in severity with time,
  • annuitant has less than two years to live (e.g. has end-state renal disease or liver cancer), and
  • annuitant is on life support or in a coma.

Health impairments that may qualify:

The following impairments usually qualify for an Essential Care Annuity. These aren't the only impairments that would qualify. Being on the list doesn't mean the impairment will qualify. If the impairment isn't severe enough or is too severe (life expectancy is less than two years) it won't qualify.

  • Cerebral vascular accident (stroke) - with residual paralysis.
  • Myocardial infarction (heart attack) - with residual symptoms or, angina or other complications.
  • Multiple sclerosis (MS) - severe: unable to work; dementia (marked by deteriorating cognitive functioning often with emotional apathy); requires 24/7 care; wheelchair dependent.
  • Quadriplegia - paralysis from the shoulders down with loss of bladder and bowel  control.
  • Paraplegia - paralysis from approximately the waist down with loss of bladder and bowel control.
  • Cancer - advanced or aggressive cancer including metastases (spread outside the organ or place of origin) but life expectancy is greater than two years.
  • Parkinson's disease (a degenerative disorder of the central nervous system) - severe: unable to work; dementia; (marked by deteriorating cognitive functioning often with emotional apathy) requires 24/7 care; wheelchair dependent.
  • Diabetes (a condition where the body can't use glucose, a type of sugar, normally) - severe with complications including kidney disease (kidneys operating at less than 50% of their functionality), kidney transplant, stroke, congestive heart failure, heart attack and amputation of a limb or limbs.
  • Aortic aneurysm  (any swelling of the aorta or weakness in the aorta wall at that   location).
  • Emphysema - severe with or without cardiac complications: requires continuous oxygen use. Severely restricted activities - can't exercise, walk any significant distances, climb stairs independently, etc.
  • Cirrhosis of the liver - severe: repeated hospitalizations with jaundice, encephalopathy, ascites (abnormal accumulation of fluid in the abdomen), liver failure, liver cancer.