Canada Life has introduced the annuity growth account, a product which breaks new ground in the annuity market.
This product differs from other annuities on the market in having a set five year term. At the end of this the customer has the chance to choose either another five year annuity or a traditional lifetime annuity. This gives the product a flexibility that current annuities lack.
Currently annuity rates are at a 30 year low. But with Canada Life's offering, by the end of the first five year period they could have risen again, allowing the annuitant to benefit from a higher annuity rate.
This is an innovative product that provides some much needed flexibility to the annuity market. The traditional annuity is set in stone and cannot be changed, but the annuity growth account, with its five year term can be used to reflect the changing circumstances of a customer.