Annuities

Essential Income Annuity -- an income solution you can count on



When investing for income, annuities are an excellent choice. The income is guaranteed because there is no market exposure. Annuities also offer a higher income rate than many other guaranteed income products, and tax advantages for non-registered funds.

A Commonwealth Annuity gives you options that bring versatility to your investment and it is backed by the strength and reliability of Commonwealth Financial. What is an annuity?

In exchange for a single lump sum investment, an insurer makes guaranteed regular income payments to an investor that contain both interest and a return of principal. Annuity payments can continue for the lifetime(s) of one or two people, or for a chosen period of time.

Annuities can be ideal for investors who:
  • Want the highest guaranteed income amount possible from their investment
  • Wish to help cover essential expenses in retirement
  • Are concerned about outliving their savings
  • Wish to minimize tax on their investment income
  • Value security and peace of mind while reducing the need for ongoing investment decisions
  • Want to subsidize early retirement income
  • Need income until pension and government benefits become available
  • Wish to fund a child's ongoing educational costs

Annuity options

The Manulife Principal Protected AnnuityTM is a Life Annuity option that provides you with principal protection by ensuring the money invested will always be received as income to you or as a legacy for beneficiaries.

Life Annuities will provide you with guaranteed, regular income for life. They can be purchased as a single life, based on one person’s life, or as a joint and survivor, based on the lives of two people.

Term Certain Annuities provide investors with guaranteed, regular income for a selected period of time. Once this period is over, income payments cease and the annuity contract ends.

Prescribed Annuities offer preferential tax treatment if you are investing using non-registered funds. Each payment includes the same amount of interest and capital. This evens out the amount subject to tax and provides some tax deferral. A Manulife Annuity may qualify as “prescribed.”

What if I die earlier than expected?

With a Manulife Life Annuity, you can choose a payment guarantee to ensure a minimum amount of income is paid from the investment to you or your beneficiaries in the event you die earlier than expected. Manulife offers two payment guarantee options:

  • Principal Protection: also known as a cash refund guarantee, this provides a lump sum payment to a beneficiary equal to the difference between the total payments received by the investor* before death and the original investment amount. Selecting this payment guarantee provides you with the Manulife Principal Protected AnnuityTM
  • Guarantee Period: allows an investor to select from zero to thirty years of guaranteed payments. In the event the investor dies earlier than expected*, the beneficiary continues to receive income payments during the guarantee period**

For Term Certain Annuities, payments continue until the end of the specified term. If you die before the term ends, the annuity payments continue to your estate or designated beneficiary until the end of the term.


*Or the death of the last surviving annuitant in the case of Joint and Survivor Life Annuity policies.
**Alternatively, if there is a lump sum death benefit required or chosen, the amount payable will be less than the total remaining income payments.