Investments

Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Returns shown are after the MER has been deducted. Performance histories are not indicative of future performance. For information on guarantees, fees and expenses that may apply to segregated funds, please read the Information Folder, Contract and Fund Facts of the segregated funds. The Manufacturers Life Insurance Company is the issuer of Manulife segregated fund contracts and the guarantor of any guarantee provisions therein. 

Asset allocation portfolios - segregated funds

Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Returns shown are after the MER has been deducted. Performance histories are not indicative of future performance. For information on guarantees, fees and expenses that may apply to segregated funds, please read the Information Folder, Contract and Fund Facts of the segregated funds. The Manufacturers Life Insurance Company is the issuer of Manulife segregated fund contracts and the guarantor of any guarantee provisions therein. 

Private investment pools - segregated pools

Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Returns shown are after the MER has been deducted. Performance histories are not indicative of future performance. For information on guarantees, fees and expenses that may apply to segregated funds, please read the Information Folder, Contract and Fund Facts of the segregated funds. The Manufacturers Life Insurance Company (Manulife) is the issuer of insurance contracts containing Manulife segregated funds and the guarantor of any guarantee provisions therein. 

Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Returns shown are after the MER has been deducted. Performance histories are not indicative of future performance. For information on guarantees, fees and expenses that may apply to segregated funds, please read the Information Folder, Contract and Fund Facts of the segregated funds. The Manufacturers Life Insurance Company is the issuer of Manulife segregated fund contracts and the guarantor of any guarantee provisions therein. 

Manulife Annuities can form an important part of a balanced income portfolio by taking the guesswork out of investing.

Unlike other income‑producing investment options like bonds or Guaranteed Investment Certificates (GICs), an annuity can guarantee income for your entire life.

An annuity can help:

  • Reduce the need for ongoing investment decisions
  • Take the worry out of market volatility impacting your income

What is an annuity?

In exchange for a single lump‑sum investment, an insurer makes guaranteed regular income payments to an individual that contain both interest and a return of principal. Annuity payments can continue for a chosen period of time or the lifetime(s) of one or two people.

Payment guarantee options are available to ensure that a minimum amount is paid out of the annuity. In the event of the death of all annuitants, if the minimum amount has not been paid out, the remaining amount will be paid to the spouse or other designated beneficiaries.

In addition, non‑registered annuities can offer certain tax advantages. Because the interest income can be averaged over the lifetime of the annuity, there may be an attractive element of tax deferral (some conditions apply).

How is annuity income determined?

The amount of income provided by an annuity is determined at the time of purchase. The guaranteed payment amount will generally depend upon the:

  • Amount of money invested
  • Person's age and sex
  • Interest rates at the time of purchase
  • Type of annuity – life or term certain
  • Length of time that annuity payments are to be guaranteed
  • Income deferral – the time period between the purchase date and when the income starts

Life annuities

single life annuity provides a pre‑determined income for an individual during the life of the annuitant. When the annuitant dies, the contract terminates unless there are remaining guaranteed payments. Any remaining guaranteed payments would then be made to the named beneficiaries.

joint and survivor life annuity is designed to cover the lives of two individuals – a primary annuitant and a secondary annuitant (usually spouses). Income is generally paid to the primary annuitant. Upon their death, the secondary annuitant continues to receive that income for their lifetime. In addition, the initial income payment amount can be reduced.

Life annuity options

At Manulife, we understand that every client has unique needs. That's why we offer a range of options to customize your life annuity to meet your specific requirements.

Non‑registered annuities that qualify for prescribed taxation can benefit from some tax deferral. A prescribed annuity has a level (fixed) payment that is a blend of capital and interest that remains the same for the life of the contract. This allows the taxable interest earned on the contract to be spread evenly over the expected life of the annuity. Both Single and Joint and Survivor Life Annuities can be prescribed. See the Annuity Taxation section for more information about prescribed annuities.

An annuity can be indexed, which offers a fixed annual percentage increase to payments to help guard against inflation. An annuitant will receive lower income payments in early years in exchange for higher income payments in later years. Indexing is not permitted for prescribed annuities.

An annuity income does not have to start immediately. You can lock in a guaranteed income amount at purchase that can start up to 15 years in the future (some conditions apply). In addition, you can select a Return of Premium option to guarantee that beneficiaries will receive 100% of the amount invested if the annuitant dies before the payment start date.

You can elect to receive payments monthly, quarterly, semi-annually, or annually, subject to minimum payment amounts.

You can choose a payment guarantee to ensure a minimum amount is paid out of the annuity to you or your beneficiaries in the event of the annuitant's death*. In general, choosing a payment guarantee will decrease the dollar amount of the income payments.

Principal protection – This option (also known as a cash refund guarantee) ensures that in the event of the annuitant's death*, a beneficiary will receive a lump‑sum payment equal to the difference between the total payments received and the original investment amount.

Guarantee period – You can select from a minimum of 3 to 30 years of guaranteed payments to ensure a specific minimum amount is paid from the annuity (some restrictions apply). This will ensure your estate and/or beneficiaries continue to receive income payments (or a commuted value**) in the event of the annuitant's death* during the guarantee period. The amount guaranteed can be less or more than the original premium.

* Or the death of the last surviving annuitant in the case of Joint and Survivor Life Annuity policies.

** Commuted Value: If, after the death of the annuitant(s), any guaranteed payments remain, the beneficiaries may choose to continue to receive the payments or to take a lump sum payment (a commuted value). The owner may choose to make any remaining payments non‑commutable, and the beneficiaries will then continue to receive the remaining income payments. Mandatory commutation for registered contracts and elected commutation will result in less than the full value being received.


Term certain annuities

Term certain annuities provide investors with guaranteed, regular income for a specific period of time. Once this period is over, income payments cease, and the annuity contract ends. If the annuitant dies before payments are scheduled to end, payments will continue to the beneficiaries until the specified period has expired.

Term certain annuity options

The following options are available to customize your Manulife Term Certain Annuity.

Non‑registered annuities that qualify for prescribed taxation can benefit from some tax deferral. A prescribed annuity has a level (fixed) payment that is a blend of capital and interest, which remains the same for the life of the contract. This allows the taxable interest earned on the contract to be spread evenly over the expected life of the annuity. See the Annuity Taxation section for more information about prescribed annuities.

An annuity can be indexed, which offers a fixed annual percentage increase to payments to help guard against inflation. An annuitant will receive lower income payments in early years in exchange for higher income payments in later years. Indexing is not permitted for prescribed annuities.

An annuity income does not have to start immediately. You can lock in a guaranteed income amount at purchase that can start up to 15 years in the future (some conditions apply). In addition, you can select a Return of Premium option to guarantee that beneficiaries will receive 100% of the amount invested if the annuitant dies before the payment start date.

With a Term Certain Annuity, an annuitant is guaranteed to receive payments for the entire term selected, from 3 to 30 years (some restrictions may apply). This will ensure your estate and/or beneficiaries continue to receive income payments if the annuitant dies before the end of the term.

You can elect to receive payments monthly, quarterly, semi-annually, or annually, subject to minimum payment amounts.


Annuity taxation

Annuities are a popular investment option for those looking to secure their financial future. However, like any other investment, they are subject to taxation. The taxation of annuities depends on whether they are purchased with registered or non-registered funds.

Registered annuities

Annuities purchased with RRSP, Locked‑in RRSP, LIRA, RRIF, LIF, LRIF, RLIF, PRIF, RPP, or other pension funds are registered annuities. For registered annuities, all annuity income paid out in a calendar year is taxable to the owner in the year the payments are received.

Non-registered annuities

Annuities purchased with non-registered funds, the owner is taxed on the income in the year they receive it, but only a portion of each income payment is taxable. There are two different tax treatments for non-registered annuities: prescribed or accrual.

With prescribed taxation, the taxable portion of each payment remains the same over the life of the annuity contract. This benefit can help provide the owner with some tax deferral.

To qualify for prescribed taxation, certain conditions must be met. Speak to your advisor for a complete list of qualifying criteria.

With non-prescribed (accrual) taxation, the taxable portion of each payment is determined annually based on the income earned since the previous policy anniversary date. Typically, the taxable portion of each payment will be larger in the initial years of the annuity contract and will decrease gradually with each passing year.


Manulife is dedicated to helping you secure your financial future with a range of annuity options that provide a guaranteed income stream.

Our customized annuity solutions are designed to meet your goals, allowing you to enjoy peace of mind and financial security. With Manulife, you can trust that you are partnering with a company with a long-standing reputation for excellence and expertise in the financial market.

For more information, speak to your advisor.

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