De-Coupled Annuity

Many advisors are aware of and have used the Insured Annuity strategy, often referred to as a "Back-to-Back." This strategy essentially uses a life annuity to fund a life insurance policy which serves the dual purpose of guaranteeing both a predictable income stream for life and a legacy for heirs.

Unfortunately the sustained low interest rate environment and changes in the taxation of insurance products have rendered the traditional insured annuity less attractive than it once was. However, with the use of a bit of forsight and creativity along with some currently available product solutions, there is a way that you can demonstrate the value of this strategy in today's environment.

By de-coupling the purchase of the life insurance policy and the annuity (securing the insurance before purchasing the annuity) with the use of a product like Empire Life's 8Pay whole life, you can put your clients in a position of benefiting from significantly increased guaranteed income and a paid up life insurance policy with strong cash values.

If you have clients who are seeking a secure way of generating guaranteed income for the rest of their lives and leaving a legacy, speak to your business development specialist for details.


Henriette Bichai

Director, Quebec & Atlantic Regions

Qualified Financial Sevices

514.338.1571 x 252