When considering Canada Life annuities (Canada Life is a well-known financial and insurance products company), it's good to know a few things about not only the annuities the company offers but also a bit about how rates on annuities are determined and the different kinds of annuities out there. For a fact, an annuity can make a great deal of sense as an investment product for many people in certain circumstances.

An annuity, which is almost always offered only by insurance companies or financial products companies that offer life insurance, is actually a form of insurance. There are characteristics to an annuity that help it to generally ensure a reliable income stream for a predetermined period of time. In many cases, annuities are very popular with those nearing retirement and who are looking to park a large sum of money such that they will be receiving a monthly payout, among other attractive characteristics.

There are several different kinds of annuities, and it's generally the case that Canada Life annuities come in all those different kinds and types. For example, the company has a line of fixed rate annuities that can make sense for those who have come into a sum of money and wish to invest it so that they're getting back a rate of return it's not only attractive but is also generally guaranteed. That's because most fixed rate annuities are invested in government bonds, which are guaranteed and will return on investment.

Other Canada Life annuities fall under what are known as “variable rate” annuities. These financial products are a bit more volatile in the money that they may return on a predetermined basis but that money, which is usually tied to the stocks that most variable rate annuities invest in, can be considerable in some cases. It's also the case that the rate can drop just as quickly if the stock market under-performs, but there are also attractive tax-deferred characteristics to many variable rate annuities.

Canada Life annuities also come in what are called “joint and last survivor” annuities. These particular financial products can make a lot of sense for couples, especially husbands and wives, looking to make sure that payments continue until the last survivor passes away. There are several different ways this particular annuity can be structured, and all can have a predetermined length of time added to them, as well.

In general, all annuity payments offered by Canada Life are guaranteed because the company is so financially sound. Tax treatment of many of these annuities are also very favorable, in the case of those annuities that require the payment of taxes. Income payments from annuities offered by this company depend on several factors, by the way.

These factors include the age of the person taking out the annuity (he or she is often referred to as the “annuitant”), current interest rates, the length of time that the payments are going to be received and how much money is put into the annuity to start. For example, someone aged 60 and nearing retirement may wish to take $100,000 from a 401(k) and put it into an annuity.

Payments will begin upon retirement and go on until the death of the annuitant. All payments will be tied to interest rates and all payments will seize upon the death of the annuitant. Canada Life refers to this particular annuity as a “life annuity,” and a retiree could do worse than to consider looking at this sort of investment instrument.