An annuity is an insurance product that can
offer seniors periodic payments (usually
monthly), based on their original investment,
current interest rates and the terms of the
contract. Non-registered annuities can be taxed
at favourable rates. A straight life annuity will
provide income for the duration of a lifetime. A
joint life annuity will provide income for life for
both spouses.
Long-term care insurance will provide tax-free
benefits if you develop a critical and chronic
illness and are unable to care for yourself. It
may cover health and personal care services
if you are living at home, in a retirement
residence or a long-term care facility. Different
policies will reimburse for eligible expenses,
a set amount for expenses on a given day or
provide flexible income without the need of
proving expenses.
Segregated funds are insurance protected
investments with guaranteed capital of either
75 or 100 per cent at maturity or death. These
funds allow you to designate a beneficiary in
your policy, bypassing probate fees.
Renting your primary home is a way to generate
monthly income to pay for accommodations in a
retirement residence. However being a landlord
also carries the demands and pressures of
seeking and maintaining good tenants, while
bearing the responsibility for upkeep and major
repairs of the property.
Scrutinize your personal taxes to ensure you are
taking advantage of all the tax exemptions and
credits for which you qualify. Consider these
points when consulting a tax expert:
• Residents of retirement communities or
long-term care facilities can claim the cost of
attendant care.
• Individuals with long-term disabilities that
affect their ability to perform the functions
of everyday life may qualify for a disability
tax credit. This tax credit may also be
transferred to a spouse.
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