Guaranteed Annuities

Annuities are created when investors exchange their capital for a guaranteed, regular income. This income can be for either a specified period of time or for a lifetime, depending on which options and features are chosen. Factors that influence the rate of return of the income include: interest rates; frequency of payments; age, sex and health of the annuitant; term of the annuity; term of the guarantee; and whether the payments are immediate or deferred. Some annuity contracts can qualify as a "prescribed annuity", which can have significant tax benefits.