Canadian Life & Health Insurance Facts // 2024 Edition 18
Annuities
are insurance contracts sold by life insurers
as either an accumulation product or pay-out
product. Accumulation annuities build up
funds for the future through contributions,
income and capital growth. With a pay-out
annuity, in exchange for upfront contributions,
life insurers make regular benefit payments for
a specified number of years, or for the lifetime
of the insured.
Sold as
Sixty-seven per cent of annuities is purchased
through a group plan.
Related products
Accumulation annuities; pay-out annuities;
and segregated funds.
Retirement Solutions
L I N E S O F B U S I N E S S
67%
33%
Individual policies
Group plans
Life and health insurers manage retirement savings for nearly
10 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 life annuities
Life annuities aren't like other retirement income products. Here's what they offer that's different:
Lifetime income benefits
that reduce the risk of
outliving your savings
Sources of annuity
contributions
Pension plans can lessen the
investment and longevity
risks of defined benefit plans
by transferring these risks to
insurers to manage
Maturity guarantees mitigate
the risk of volatile investment
returns
Pension plans
RRSPs & TFSAs
RRIFs
Non-registered
savings
$
67.9B
2023 annuity
contributions
2023 annuity contributions
