Who should invest in Lifetime income benefit (LIB)

Canadians aged 50 or older – in other words, people who may be thinking about retirement – are eligible for the lifetime income benefit option (or LIB). The LIB is an option that can be added to some segregated fund policies; doing so could potentially guarantee you income for the rest of your life. It’s a feature that may be particularly appealing to Canadians preparing to enter retirement.

If you don’t have a pension plan through your employer, an LIB can help provide you with a guaranteed income and strengthen your retirement portfolio.


Canadians entering retirement want to know that they won’t run out of money. The lifetime income benefit option can help ease those fears. That’s because, for a monthly cost, an LIB ensures your guaranteed income remains the same for the rest of your life, regardless of how the segregated fund performs in the marketplace.

The amount of income you receive from the LIB will only decrease if you make excess withdrawals from the segregated fund policy or withdraw an amount greater than the annual guaranteed income amount.

Next Step

 Your decision should be made with the help of someone who really understands the product.