FAQs

Q. What is the minimum pension fund Canada Life will accept into an annuity?

A. Canada Life's minimum premium when buying directly is £5000 after the payment of Tax Free Cash

Q. How are annuities taxed

A. Annuity payments are taxable as earned income and are taxed under the PAYE system. After setting up your policy, we contact the Inland Revenue and they inform us of your tax code.

Q. If I buy a Canada Life annuity, can I change my mind?

A. Once you have bought the annuity it is a final decision, there is no chance to cancel. But we give you a period of at least 30 days in which you can review and consider your choices, before the contract is concluded.

Q. How long is my quote guaranteed for?

A. The quotation is guaranteed for 14 days. The annuity rate is secured upon receipt of all requirements, including the total purchase amount.

Q. Are there any charges involved with taking an annuity with Canada Life?

A. There is an administration charge of just over 1% of the purchase price after the deduction of Tax Free Cash. The exact figure will be noted on your quotation and is already accounted for in the income figure provided.

Q. Do Canada Life offer enhanced rates for smokers or people in ill health?

A. Canada Life currently offers one flat rate for all annuitants. However, we are aiming to launch an Impaired Life Annuity in the near future.

Q. How will my annuity be paid if I live abroad?

A. Canada Life can pay the income into a UK bank account or by sterling cheque.