Life Income Fund

Main Features

• A life income fund (LIF) is similar to a RRIF in the sense that it receives funds from a private pension plan or a locked-in retirement account.
• The minimum and maximum annual withdrawal amounts from a LIF are determined by law on the basis of your age and the balance in your LIF. Unlike a RRIF, a LIF has a maximum annual withdrawal limit. Withdrawals from a LIF are added to the investor’s annual income.
• You choose the withdrawal frequency and your investment instruments and terms and conditions, and may alter them as needed.
• Lump sum withdrawals from a LIF are permitted, subject to an annual maximum.
• Under federal law, the balance of a LIF under federal jurisdiction must be converted into a life annuity by the end of the calendar year in which the planholder turns 80. However, Quebec laws have no such restrictions.
• All these investments are LIF eligible: guaranteed investment certificates, stock-indexed deposits, segregated funds, mutual funds, shares, bonds, and deferred annuities.

Major Advantages

• LIFs offer planholders substantial flexibility with respect to the terms and conditions of their investments and withdrawal amounts.
• Planholders determine the periodic income they wish to receive and can change the amount at any time up to the limits prescribed by law.

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Attention: The above text is of general nature and is intended for explanatory purpose only. Each of the products described above has its own specific features. Moreover, only the product contracts contain the complete terms and conditions as well as restrictions and exclusions to which they are subject.