What is an Insurance GIC?

An insurance GIC (also called an accumulation annuity) offers secure returns, predictable growth and freedom from worry about market ups and downs.

What is an Insurance GIC?

Life insurance companies offer a unique way to save money for the future that's safe and guaranteed. It's called an insurance GIC, or more formally, an accumulation annuity. Like a guaranteed investment certificate, it provides a guaranteed rate of return on your savings.

How does an Insurance GIC work?

You choose the amount you wish to invest and how long you want to own it. Your insurance GIC grows with interest each year. At the end of the term, you receive back your original investment, plus all the accumulated interest.
Your money is safe, its growth is predictable, and you don't have to worry about market ups and downs.

What are the advantages?

An insurance GIC has many of the same features as a regular GIC. Like a GIC, it provides a guaranteed rate of return over a fixed period of time. But because it's an insurance product offered by an insurance company, there are additional advantages.
For example, you can name a beneficiary, so when you die, the money will flow directly to your loved ones without the potential delays and costs involved in settling an estate.
And because your gains are considered annuity income, if you're over age 65, you may qualify for the pension income tax credit. That credit eliminates tax on up to $2,000 of pension income each year.
An insurance GIC provides the security of knowing your savings are protected and your rate of return is guaranteed.

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Learn more about insurance GICs:
https://www.sunlife.ca/ca/Investments/Guaranteed+interest+products/Insurance+GICs?vgnLocale=en_CA