Empire Life’s Insured Annuity

Empire Life has launched its own Insured annuity designed to provide an alternative to regular, low fixed income investments. An insured annuity is designed to provide a tax-efficient, lifetime income and preserves or increases the money available to your estate.

Simply, the annuity provides the income and the life insurance policy it comes with preserves the capital you already have by providing a tax-free payout in the event the holder passes away.

Normally, there are two approaches available when purchasing an Insured Annuity: Traditionally, capital is used to buy an annuity and part of the income generated goes towards a life insurance policy.

With Empire’s product, the insurance policy is pre-paid with the some of the available capital that went towards it, which means all the income generated goes towards your own lifetime income.

The chief benefit of this is a larger lifetime income while the original capital is preserved and not dipped into. The income is guaranteed for life and can be continued at the same rate for the life of your spouse. Plus, it can be completely free of upkeep, so if you don’t want to, or are uninterested in managing your portfolio, you don’t have to. The entire income stream can be creditor protected and separated to go towards lifestyle needs, rather than unforeseen business problems. Plus, payments are guaranteed for a minimum number of years, regardless of when the death occurs.

The income generates less tax and is eligible for the pension tax credit. It can also be preserved for heirs and charitable causes.  

The one potential drawback could be that the guaranteed income flow cannot be changed or cancelled, which could be a advantage or a disadvantage depending on your life situation.

If you are interested in this, or other life insurance products, please don’t hesitate to give us a call at 1-866-899-4849, or visit our Term Insurance Quote Page.

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  • Annuity Information
    March 7, 2012 at 10:29 pm

    Good post. This article is considerably helpful to many retirees. Thanks for the write-up regarding insured annuity.