Term Certain Annuity

The term certain annuity provides your clients with a regular guaranteed income for a specified duration. If the annuitant dies before the end of this period, the annuity is paid to the beneficiary.


  • Provides a guaranteed income for a specified period of time
  • Safe from market fluctuations
  • No management necessary
  • No minimum age to purchase
  • Non-registered annuities are eligible for pension income tax credit and pension income tax splitting


  • Indexation: to offset the effects of inflation, the annuity can be indexed at an annual percentage rate.

Factors that influence annuity payments

  • Amount paid
  • Date funds are received
  • Date of first payment
  • Payment period
  • Interest rate in effect when the annuity is issued

Source of eligible funds

  • Registered annuity
    • RRIF
    • RRSP
  • Non-registered annuity
    • Non-registered plans

Annuity payment

  • The annuity can be paid by direct deposit or cheque
  • The annuity can be paid monthly, quarterly, semi-annually or annually
  • Tax witholding permitted on request

End of annuity payments

  • At the end of the payment duration


  • No changes are permitted


  • The annuity may be surrendered at the commuted value
  • The prescribed annuity is non-redeemable


  • Registered annuity: All the payments received are taxable
  • Non-registered annuity
    • Prescribed: taxed at same rate each year
    • Non-prescribed: tax rate decreases throughout the contract