A contract in which a life insurance company agrees to pay you a lifetime, periodic payment (annuity) in exchange for your RRSP, locked-in RRSP, LIRA, RRIF, LIF or non-registered savings.
Provides you with predetermined payments for your lifetime and, in some cases, your spouse's lifetime.
Payments may be guaranteed for a certain period of time (5 to 25 years): in the event of death during this period, your spouse continues to receive the annuity until the end of the guaranteed period. If there is no surviving spouse, the designated
beneficiary or beneficiaries receive an amount equal to the present value of the payments for the remaining period.
Contract may include a survivor clause where, upon annuitant's death, payments are made, in whole or in part, to the spouse for his or her lifetime.
To find out more about annuities, visit the Desjardins Financial Security Web site.