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Prescribed Annuities 

Prescribed-AnnuitiesPrescribed annuities can only be purchased as non-registered life annuities. The annuity payments are the same regardless if the annuity is prescribed or non-prescribed. The difference is prescribed annuities have a level portion of periodic annuity payments attributed to tax for the duration of the annuity. Non-prescribed annuities have a larger portion of periodic annuity payments attributed to tax in the early years and less in later years. The result is less tax being paid up front with a prescribed annuity than with a non-prescribed annuity.

Prescribed annuities are attractive to those in high personal marginal tax rates during retirement. They offer tax savings to those in higher personal marginal tax rates in the early years of the annuity and lower personal marginal tax rates in the later years of the annuity. With a prescribed annuity the annuitant receives a periodic annuity payment income steam comprising of both interest and principal that will remain the same for the duration of the annuity. Only the interest portion of the periodic annuity payment income stream is taxable. The result is less personal income tax paid on the interest portion received from the prescribed annuity than a non-prescribed annuity.


Annuities Are Complex Products That Require Professional Guidance 

When deciding which type of annuity is best suited for you Stone-Hedge Financial Group Inc. will guide you through this process.

Stone-Hedge Financial Group Inc. will provide quotes from some of Canada’s most competitive insurance companies.


The information provided on this web site is intended for general information only. It should not be construed as legal, accounting, tax or specific insurance and investment advice. Clients should consult a professional advisor concerning their situations and any specific insurance and investment matters. While reasonable steps have been taken to ensure that this information was accurate as of the date hereof, Stone-Hedge Financial Group Inc. and its affiliates make no representation or warranty as to the accuracy of this information and assume no responsibility for reliance upon it.


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