Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC Shoreline Financial in Victoria BC Shoreline Financial in Victoria BC Shoreline Financial in Victoria BC


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Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC
Shoreline Financial in Victoria BC

Annuities

Annuities are used to generate a monthly or annual income over a fixed period of time (e.g., no term, 5 years, 10 years, life). Life insurance companies are the only financial institution that can issue annuities.

Advantages:

  • A significant reduction in tax occurs with an annuity because the monthly or annual income is a combination of returned principle and interest. Only the interest is taxed.
  • Can provide a fixed and gaurenteed income for situations such as a mentally or physically challenged person, for retirees and single parents with or without dependants.

Disadvantages:

  • Typically, when an annuity is purchased the principle becomes the property of the insurance company. However, there are cashable annuities in which the remaining principle may be returned. But these annuties generate a significantly lower income.
  • In general, the annuitant enters a contract with the insurance that may not be changed. For example, the rate of return is fixed at the time of purchase. Therefore, timing is a critical factor.
  • The monthly or annual income varies significantly from company to company. Therefore it is in your best interest to shop the market for the highest return, being careful to inquire about the companies financial rating. If you are considering the purchase of annuity we encourage you to call our office.

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