An Annuity provides a guaranteed income for either Life or for a specified period of time.
Payments are either monthly or annually.
The annuity product is designed to be an income product (think pension). It is not designed to be used for estate planning (i.e. wealth transfer).
Pro
Income Security.
No investment decisions to make.
Con
No access to the capital once the annuity is purchased.
Life Annuity
Issued to clients between the ages of 16 and 86.
Has a guarantee period from 5-30 years for Registered money (e.g. RRSP) or 7-30 for non registered money.
Payments can be indexed.
The Annuity Beneficiary will receive payments through the guarantee period if the annuitant passes before end of that term.