Insured Annuity / Back to Back

Insured Annuity / Back to Back

• Client Profile
  • Desire for a guaranteed and/or indexed income stream that is tax-preferred.
  • Desire to enjoy retirement while still preserving some or all of estate values.
  • In fair to good health.
• Solution Opportunity
  • Client applies for and obtains permanent life insurance to replace some or all of their non-registered assets. This is critically important, and must be secured prior to purchase of annuity.
  • Some or all of non-registered assets are used to purchase a prescribed annuity, either on a single life or joint life basis.
  • The after-tax payments from the prescribed annuity, even after paying for the insurance costs, will still be greater that most after-tax fixed-income product returns (and some or all of initial capital will be preserved for future generations).