A Registered Retirement Income Fund (RRIF) is an investment product that pays out income to the policyholder. RRIFs are registered under the Income Tax Act (Canada), so tax is not paid on the interest income and growth of the account value. The policyholder must withdraw a minimum amount from the fund each year, but they can also withdraw amounts in excess of this minimum. Typically, the payments will be monthly, but they can also be quarterly or annually.
If you decide to take your RRIF as a lump sum, the lump sum will be covered under Assuris accumulated value protection, up to $100,000 or 90% of the amount, whichever is higher.
If you decide to continue taking payments from your RRIF after the date of failure, the payments are protected under Assuris monthly income protection up to $5,000/month or 90% of the amount, whichever is higher. At the date of failure, if the annual minimum withdrawals from your RRIF:
For quarterly benefit payments, the Assuris protection is up to $15,000 quarterly or 90% of the promised quarterly payments, whichever is higher.
For semi-annual benefit payments, the Assuris protection is up to $30,000/semi-annually or 90% of the promised semi-annual payments, whichever is higher.
For annual benefit payments, the Assuris protection is up to $60,000 annually or 90% of the promised annual payments, whichever is higher.
