Income Generation

• Disability Income
• Insured Annuity
• Insured Retirement
• Long Term Care

Estate & Insurance Services

Insured Annuity
How do you feel about the possibility of increasing your retirement income and reducing the amount of tax that you pay? Consider an Insured Annuity in addition to your portfolio.

If you are retired, you may be depending upon non-registered investments to supplement your income from other sources. As you know, the income from non-registered investments is fully taxable on an annual basis. Also, on death such assets may be subject to a form of probate tax (except in Quebec) as part of your estate.

As a risk-adverse investor, how could you provide a better potential return for yourself without exposing your investments to further volatility? The insured annuity could be the answer for you that can provide greater income with tax advantages.

How does it work?
The insured annuity begins with the purchase of a prescribed life annuity using non-registered funds. The annuity provides a level, guaranteed income for the remainder of your life. Income is calculated by averaging the interest that would be earned over the rest of your life, combined with a level amount of capital both of which are returned to you each year. Tax is payable only on the part of the income that is interest – the net return provided by the annuity is greater than other guaranteed interest investments. Upon death, the annuity payments end.

What about my estate?
The other component of an insured annuity is a life insurance policy. The death benefit is equal to the initial annuity deposit. The insurance premiums are paid from the tax savings provided by the annuity. The proceeds are paid out on death directly to your named beneficiaries, tax-free and potentially exempt from probate fees.

The bottom line for Insured Annuities is that they may provide increased income, higher net returns on your money and estate preservation.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you who will be pleased to introduce you to an Estate and Insurance Advisor.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.

Note: All insurance products are offered through BMO Nesbitt Burns Financial Services Inc. by licensed life insurance agents, and, in Quebec, by financial security advisors.