Annuities
Annuities are one of the many Retirement Income Options (RIOs) available today to help fund your retirement needs. What distinguishes annuities from other RIOs is that annuities are binding contracts between the customer and the issuer, providing the customer with a set amount of money based on their desired payment schedule (weekly, biweekly etc.). The size of the payment amount is determined using payment frequency, the original investment, the prevailing rate of interest, the type of annuity option and the age/sex (customer's or spouse's) used to calculate the duration of the annuity.
Straight Life Annuity
Provides an annuity for the duration of the customer's life. Although this type of annuity provides the highest level of income, it also carries the largest drawback in that payments cease as soon as you die, even if that happens one year into your contract.
Life Annuity with Guaranteed Number of Payments
Similar to the Straight Life Annuity, this annuity limits the shortcoming of the above-mentioned annuity by providing guaranteed payments (five, 10, 15 or 20 years) even if the annuitant passes away one year into their contract.
Joint and Last Survivor Annuity
This type of annuity provides income for two people. It ensures that the surviving annuitant has a steady flow of income until they pass away.
Installment Refund Annuity
This type of annuity is very similar to that of the Life Annuity with Guaranteed Number of Payments, the difference being the guaranteed amount to be paid is based on the initial investment and not a set number of years.
Cash Refund Annuity
Provides the customer with an annuity with the added protection that if they pass away before their annuity payments exceed their initial investment, a named beneficiary or the customer's estate will be entitled to receive the balance in cash.
Fixed Term Annuity
This type of annuity provides the customer with a guaranteed payment amount based on a term of five, 10, 15 or 20 years with payments not exceeding the chosen term. If the customer passes away before the end of the term, the payments will continue to be paid to a named beneficiary or the deceased's estate.
For help selecting the right annuity for you, or more information about your Retirement Income Options, visit any TD Canada Trust branch or call 1-800-560-6377.
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