What are Investments?
Investments help contribute towards meeting your financial goals, such as retirement, education expenses or vacations. FaithLife Financial offers two types of investment products.
Investment products that provide guaranteed principal and interest rate:
- Individual Savings Annuity
- Single Premium Annuity
What is an Annuity?
An annuity is a unique financial vehicle designed to help people accumulate money for their retirement and/or turn a lump sum of money into a guaranteed stream of income for life. You have an option to begin receiving the income at a future date or immediately.
Individual Savings Annuity
An Individual Savings Annuity (ISA) is an investment offered through the Canadian Insurance Industry. Similar to Guaranteed Investment Certificates (GICs), it offers payments to you at the maturity of the investment. Prior to maturity, it allows you to grow savings with a number of investment term options, including a daily interest account and various guaranteed interest accounts. An ISA may be registered as an RRSP, providing immediate tax credits and deferring tax on interest earned.
A small initial lump sum and regular monthly contributions can generate solid returns. The value within the annuity grows (accumulates) as deposits are made and as it earns interest. Our ISA features two savings accounts:
- Daily Interest Account – Interest compounded daily.
- Guaranteed Interest Account – interest compounded annually and guaranteed for investment terms from nine months to five years.
Additional ISA Features
- No front-end charges
- Estate Protection: Upon your death, funds remaining in your account go directly to your beneficiary; they are not subject to probate fees. Registered funds left to a spousal beneficiary continue to defer income tax until they are received as income
- Bonus Interest: Additional 1/4% bonus rate for Guaranteed Interest Accounts with a policy value exceeding $50,000; when the policy value totals $100,000 or more, you’ll receive an additional 1/4%, and a third 1/4% for accounts over $200,000 – bringing your potential total bonus interest to 3/4%. (Bonuses apply to subsequent deposits and reinvestments. Bonuses are not part of the policy contract and may be changed at any time)
- Potential Creditor Protection: When you name an eligible or irrevocable beneficiary, your ISA may be safeguarded from creditors.
- RRSP eligible
- Charges may apply if you surrender funds from a GIA before the end of its term.
Single Premium Annuity
Rock Solid Income
If an inheritance, financial settlement, or your accumulated retirement savings leaves you with a substantial sum of money, our Single Premium Immediate Annuity (SPIA) can provide guaranteed lifelong income.
- The SPIA provides regular income payments for life or for a specific term
- Choose an income schedule that suits your needs: monthly, quarterly, semi-annually or annually
- Receive income payments of $50 or more
- Begin a SPIA with a minimum of $10,000
- RRSP eligible
- Income payments must begin within 10 months of your SPIA purchase
Choose the income option that’s best for you:
- A Single Life Annuity without a Guaranteed Period provides income for life.
- A Single Life Annuity with a Guaranteed Period provides income for life; however, if you die before the end of the guaranteed period, payments are made to your beneficiary for the remainder of the period.
- A Term Certain Annuity provides income for a specified term only.
- A Joint & Last Survivor Annuity without a Guaranteed Period can provide lifelong income for a married couple; annuity payments may be reduced upon the first death.
- A Joint & Last Survivor Annuity with a Guaranteed Period provides a married couple with income for life; annuity payments may be reduced upon the first death. However, if both individuals die before the end of the guaranteed period, payments are made to the beneficiary for the remainder of the period.
What is a Segregated Fund?
A Segregated Fund is a type of investment fund, similar to a Mutual Fund, administered by Canadian insurance companies in the form of individual, variable life insurance and offered only to Canadians. View our rates or contact your FaithLife Financial Representative to create or review your investment plan.
FORTRESS® Funds & FORTRESS® 2 Funds
Please note: The FORTRESS® Funds and FORTRESS® 2 Funds product lines were closed to new policies on April 1, 2013. While FORTRESS® products are no longer available for sale as a new policy (after March 31, 2013), current FORTRESS® Fund policyholders (prior to April 1, 2013) can continue to make contributions and transfers into existing policies. Existing FORTRESS® policyholders can track fund values and performance here.
FORTRESS® Funds (Segregated Funds) are an investment product, similar to a Mutual Fund, administered by Canadian insurance companies. They provide an opportunity to participate in the potential of the markets with a high percentage of principal protection. We offer a group of high-quality investment funds for long-term growth potential. From bond and equity funds, to international funds and money markets, FORTRESS Funds provide diversity, backed up by valuable guarantees.
Profitable Yet Flexible
FORTRESS pools your money with that of other investors. The funds are then carefully, professionally managed to maximize their potential. They are:
- Flexible – you can invest in any combination of funds you choose
- RRSP eligible
- Cost-effective – avoid set-up fees and front-end loads (management fees apply)
- Transferable – transfer money between accounts, there’s no charge for your first four transfers annually
- Easy – Pre-Authorized Debit (PAD) makes for easy contributions and allows you to take advantage of “Dollar Cost Averaging”
Unlike Mutual Funds, FORTRESS and FORTRESS 2 Funds are guaranteed to return all or a portion of the premiums you’ve paid.
- 75% of all net deposits are guaranteed when your plan matures (minimum 10 years for FORTRESS and 20 years for FORTRESS 2)
- Upon your death, 100% of net contributions made prior to the policy anniversary before your 65th birthday will be paid to your beneficiary, plus 75% of subsequent net contributions
- Proceeds go directly to the beneficiary, providing immediate access to the funds. And as long as you have named a beneficiary, proceeds are not subject to probate. Registered funds bequeathed to your spouse can continue to defer income tax until received as income
FORTRESS Funds have many advantages, but there are some limitations you should understand. Ask your representative for details.
Please note: Subject to any applicable death and maturity guarantee, any part of the premium or other amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value according to fluctuations in the market value of the assets of the segregated fund.
Convert to Income
When you retire, you can convert your registered funds to a RRIF (Registered Retirement Income Fund) and receive regular income payments, while keeping the bulk of your retirement nest egg tax-deferred.
- 2017 Annual Financial Statements2017_Annual_Financial_Statements.pdf (379 KB)
- FORTRESS Funds Information FolderFORTRESS_Funds_Information_Folder.pdf (413 KB)
- FORTRESS Fund FactsFORTRESS_Funds_Facts.pdf (509 KB)
- FORTRESS 2 Funds Information FolderFORTRESS_2_Funds_Information_Folder.pdf (492 KB)
- FORTRESS 2 Fund FactsFORTRESS_2_Funds_Facts.pdf (449 KB)