Annuities
An annuity is a contract you make with an investment deposit with an insurance company in exchange for periodic payments.
An annuity is like a mortgage payment in reverse. You are investing with a financial institution and you receive regular income payments that contain interest and principal. These payments may be for a specific period of time or for the rest of your life, no matter how long you live.
Annuities are ideal for people who:
- require a dependable amount of income for life,
- require a dependable amount of income for a specific time period,
- are not interested in making on-going investment decisions and/or who want a very simple investment,
- don't want to worry about outliving their income.
There are different kinds of annuities which are sometimes offered under different marketing names from different institutions. For example, Manulife offers:
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