Insured annuities and GICs are great ways to ensure your income in your retired years. For those that don’t know an insured annuity is practically both a prescribed life annuity combined with a term life insurance policy. The life annuity provides a guaranteed income stream. On the other hand, the term life insurance policy provides a cash payout upon a death claim.
A GIC, otherwise known as a guaranteed investment certificate, is an investment that offers a guaranteed rate of return over a period of time that is fixed. GICs are most commonly provided by banks or trust companies. GICs have a low risk profile, thus, the return from a GIC is generally less than other investments.
In our infographic below, we created a scenario. The person we will use in the scenario is Jennifer. She is a senior aged 68 and a non-smoker. Jennifer is thinking of using an insured annuity over a GIC but is unsure which has the best rate of return. Here is how her income will generate.
