What Annuities Are Protected From Creditors? 
Good question ! Creditor protection is an important concern , especially for the self-employed . There are basically two types of annuities , immediate and deferred . Both are considered insurance products and as such can offer creditor protection under certain circumstances . Immediate annuities , as the name suggests , provide an immediate income stream in exchange for a lump sum . They are often used to provide a guaranteed income in retirement planning . Deferred annuities are accumulation products that have the option of an annuity at some point in the future . In Canada for example , they can be Guaranteed Interest Annuities -LRB- GIA -RRB- , that are similar to Guaranteed Investment Certificates -LRB- GIC -RRB- or Segregated Funds -LRB- variable annuities -RRB- that are similar to mutual funds . With both types of annuities , in order to offer creditor protection , you would need to have been solvent when you put the money into the contracts . In other words , you would not have been trying to attempt fraud . If the above condition is met , the income flow from immediate annuities is afforded creditor protection . Deferred annuities , like insurance policies , receive creditor protection based on the beneficiary designation . Eligible beneficiaries include those in the `` protected class '' : spouse , parents , children and grandchildren . In addition , irrevocable beneficiaries also qualify . Please check with a lawyer for your individual situation . If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me . If you would like to work with a local life insurance broker , you could start with a Google search . For example , if you search for : life insurance broker Halifax or life insurance agent Halifax , my name , along with several others , will come up . You can use the same method to find a life insurance broker in your community . 