CLHIA-ACCAP

Canadian Life and Health Insurance Facts, 2023 Edition

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Lines of business Retirement solutions Annuities are contracts sold by life insurers that pay a guaranteed regular income in exchange for upfront contributions. Income can start right away, or in the future. These products protect individuals from outliving their savings and are often used to provide retirement income. Sold as: Seventy per cent of annuities is purchased through a group plan. 2022 annuity contributions 30% 70% Group plans Individual policies Related products: Accumulation annuities; pay-out annuities; and segregated funds. Life and health insurers manage retirement savings for over 9 million Canadians Over eighty-five per cent of small businesses that provide pensions, RRSPs, TFSAs, and RRIFs to their employees offer these through life and health insurers. Benefits of owning annuities Annuities aren't like other retirement income products. Here's what they offer that's different: Lifetime income benefits reduce the risk of outliving your savings Pension plan de-risking by transferring the investment risks of defined benefit plans to insurers to manage Maturity guarantees mitigate the risk of volatile investment returns Sources of annuity contributions $ 62.2B 2022 annuity contributions Pension plans RRSPs & TFSAs RRIFs Non-registered savings Canadian Life & Health Insurance Facts // 2023 Edition 15

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