(Registered Retirement Income Funds)
A RRIF is a deposit type product that pays out income to an individual.
RRIFs are registered under the Income Tax Act (Canada)
. The interest income and growth of the account value are sheltered from income tax. The policyholder must withdraw a minimum amount each year from the fund but can also withdraw amounts in excess of this minimum.
Individual RRIF contributions invested in deposit type products are eligible for Assuris protection. If your life insurance company fails, your RRIF policy will be transferred to a solvent company.
Benefits under a RRIF are covered under the Accumulated Value coverage. If you decide to take your RRIF as a lump sum, on transfer Assuris guarantees that you will retain 100% of the promised Accumulated Value (account value) up to $100,000.
However, if you decide to continue taking payments from your RRIF, the payments are covered under the Monthly Income coverage. At the date of failure, if the annual minimum withdrawals from your RRIF:
- are less than or equal to $24,000, the payments are fully protected.
- exceed $24,000, the payments will be protected for $24,000 or 85%, whichever is higher.
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