What Will We Be Discussing In This Review Of The Canvas Annuity Program?In this review, we will be going over Canvas Annuity, the online annuity purchasing program, and will provide more in-depth details regarding:
- How the program works
- What types of annuities they offer
- What you can anticipate if you purchase an annuity through Canvas
- Pros and cons of buying an annuity online
- Customer reviews of Canvas Annuity
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.
If you’ve been thinking about purchasing an annuity, you may be scouring the Internet for more information about how these financial vehicles work, and whether or not an annuity is really right for you, based on your short- and long-term financial goals. The good news is that today, there are many opportunities to purchase annuities online. This can make the process much more convenient. It can also provide you with added peace of mind in our social distancing “new normal” world. One way to buy an annuity online is through Canvas Annuity. The company’s website provides direct access to purchase annuities, as well as a learning center so you can read over more details about certain annuities and what you can anticipate if you own one. But before you run out and start clicking “Buy Now” buttons, it is best to do a bit of legwork about the company and its products – especially if you are planning to contribute a sizeable amount of your savings with them.
Annuity and Retirement Income Planning Information You Can TrustIf this is your first visit to our website, then please allow us to officially welcome you here to Annuity Gator. Who exactly IS Annuity Gator? (And why should you care?) We are a team of retirement income and annuity specialists who focus entirely on offering in-depth, and unbiased, annuity reviews. Our online database – which can be accessed directly from here – has reviews on hundreds of annuities from a long list of annuity and insurance providers. Unlike many of our competitors – who have just recently started to offer annuities online – we have been at this for quite a while now. Our primary mission is – and always has been – to provide information about annuities to consumers so that they know exactly what they may (or may not!) be getting into before it is too late. Annuities can be extremely complex – especially the ones that have a lot of moving parts like fixed indexed annuities. So, it helps to have someone on your side who is adept in how annuities work and who can also pare down the massive amount of “fine print” into something that is more easily understood. That’s where the Annuity Gator comes in! When looking for annuity information online, it is essential that you know who is truly trying to provide education on the products, and who is simply trying to sell you something…regardless of whether or not it is the right financial vehicle for you. It’s easy to be lured into some of the other websites out there in cyberspace – especially when they make bold claims, such as:
- Easy buying process
- Lowest annuity fees
- High income payouts
- Top-rated annuity carriers
- Income stream for life
- The customer is always right!
Canvas Annuity at a Glance
|Company’s Primary Focus||Annuity education and purchasing options|
|Type(s) of Annuities Offered||Fixed / MYGA (Multi-Year Guaranteed Annuities)|
|Annuity Issuer||Puritan Life Insurance Company of America
|A.M. Best Rating (for Puritan Life)||B++|
|Phone Number||(888) 970-3556|
Opening Thoughts on the Canvas Annuity ProgramCanvas Annuity offers fixed/multi-year guaranteed annuities via its website. The entire process of purchasing an annuity from Canvas can take place online. Based in Scottsdale, Arizona, Canvas Insurance Agency, LLC also has a “customer first” focus and describes itself as providing simple and straightforward advice. The company pares modern technology through its cloud-based insurance agency. The fixed/MYGA annuities provided through Canvas are underwritten by Puritan Life Insurance Company of America, an insurance carrier with a 75-year history and nearly $333 million of insurance in force (as of year-end 2019). You can check out more of the financial details about Puritan Life Insurance Company of America here. While the company has only been accredited since June 2020, Canvas also has an A- rating through the Better Business Bureau. You can read the BBB profile for Canvas Insurance Agency here. There are two primary MYGA annuity options offered through Canvas Annuity. These are the Future Fund – which focuses on earnings – and the Flex Fund, which provides more access to your money if and when you should need it.
Before We Get Into The Gritty Details, Here Are Some Legal Disclosures We Need To Provide…This is an independent product review, not a recommendation to buy or sell an annuity. Canvas Annuity has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
How Canvas Annuity Describes Its Multi-Year Guaranteed AnnuitiesThe two primary product options offered through Canvas are the Future Fund and the Flex Fund. Both of these provide guaranteed rates for 3, 5, or 7 years – and as with most other multi-year guaranteed annuities (MYGAs,) the longer you commit your money, the higher the guaranteed interest rate will be. Which product you choose to purchase from Canvas Annuity – if any – will depend largely on the goals you have. That is because the Future Fund focuses on earning potential, and the Flex Fund is more of an income or access-based annuity. Most annuities typically come with a plethora of “fine print.” And like many other products and services that are purchased, it can take quite a while to read through all of it – so oftentimes, people just “Agree” and move on. But when it comes to your life savings, and your future retirement income stream, it can definitely be worth getting a better understanding. Let’s take a closer look at each of the Canvas Annuity offerings:
Canvas Annuity’s Future FundThe Future Fund that is offered through Canvas Annuity offers the option of 3, 5, and 7-year terms on the rate guarantee. As of April 2021, these are 2.75%, 3.25%, and 3.50% respectively. (To check out updated rates for the Canvas Annuity Future Fund, go here). With no broker commissions, fees, or account charges, Canvas Annuity states that this particular annuity option can help you to “grow your money as fast as possible.” And, while there is a surrender charge for “cashing out” early, this may be waived in certain instances, such as being diagnosed with a terminal illness. Like other deferred annuities, the money that is in the account grows tax-deferred. This means that there is no tax on the gains in the annuity until the time of withdrawal. (At that time, the portion of the income/withdrawals that are considered to be gain will be taxed at your then-current income tax rate. The portion of the income or withdrawals that is considered a return of your premium will be received tax-free). The full brochure on the Future Fund from Canvas Annuity can be accessed here.
The Flex FundThe Flex Fund also offers a rate lock for a preset time frame of 3, 5, or 7 years. Here, too, you can receive tax-deferred growth, which may be a primary catalyst for growing your money faster. Plus, with no ties to the stock market, this annuity’s value can continue to expand, even in the event of a “correction”. With this annuity, you can receive your initial contribution back at any time. So, as a “tradeoff” for this liquidity, the guaranteed rates are lower than those offered with the Future Fund. You can see the updated Flex Fund rates on the Canvas Annuity website here. To take a look at the full Canvas Annuity Flex Fund brochure, go here.
How Financial Advisors Might “Pitch” the Canvas Annuities to Potential PurchasersBecause the Canvas Annuity products can be purchased directly online – and the fact that there are no commissions – you won’t likely hear about these annuities from an insurance or financial advisor.
Canvas Annuity FeesAlthough many fixed-rate annuities don’t charge excessive fees, there are some areas that you need to be aware of. For example, with the Flex Fund and the Future Fund, you could actually have up to 10 years of surrender charges, depending on the guaranteed rate period that you choose.
Canvas Annuity Flex Fund and Future Fund Surrender Charge Schedule
|Policy Year||3 Year MYGA||5 Year MYGA||7 Year MYGA|
Insurance Guaranty FundUnlike FDIC (Federal Deposit Insurance Corporation) protection on money you have in a bank, annuities are not FDIC insured. However, if the insurance company that you own an annuity through goes under financially, there are some protections in place. For instance, if a life insurance company goes out of business, its policy holders are protected by state governments – in particular, state insurance regulators that monitor the financial well-being of the insurer. In this case, the state regulators will initially attempt to transfer the life insurance or annuity contract to a stable insurance fund. However, if that isn’t possible, they can instead keep the contract active via the state’s guaranty fund – which essentially acts as “insurance for the insurance company.” There are guaranty funds in all 50 U.S. states, and some states maintain more than one fund. The amount of a life insurance death benefit and cash value, as well as an annuity value, can differ from one state to another. More information regarding each state’s guarantee fund coverage can be found here.
The Annuity Gator’s End Take on Canvas AnnuityAt Annuity Gator, we feel that annuities are good financial options – provided that they are purchased for the right reasons. With that in mind, some of the key advantages to purchasing through Canvas Annuity could be:
- Convenience (the entire transaction can take place online)
- Low or no fees
- Rate lock for a pre-set period of time
- Principal protection in any type of market or economic environment
- Annuity education via the company’s website
- No in-person meetings (which can be beneficial when discussing your retirement income plan)
- Low rate guarantees
- Surrender charges (possibly for 10 years)
- Canvas is a relatively new company
How can there be surrender charges for years four, five, and six of a three year annuity.
Does that mean I cannot take the entire mature amount at the end of maturity period?
Hi Jay– Thank you for your message.
We would be happy to provide you with more details on this and answer any questions you may have. In order to best support you, we would need some additional information from you. Rather than sending the info back and forth via email, it would be best to discuss it by phone. Please feel free to contact us directly, toll-free, at (888) 440-2468 to chat with one of our annuity specialists or visit https://www.annuitygator.com/contact/
We look forward to hearing from you.
Jay has a good question that should be answered for all reading this review. Could you please respond as an included comment on this review.
Hello, thank you for your message.
Jay’s comment is a bit of a broad question and it is difficult to give a complete answer through this source. However, you may reach out to Puritan Life Insurance and they will be able to further explain any doubts you may have.
RICHARD A HUSBAND
Please edit review to address how an annuity (Canvas, or others) is guaranteed in the case of default of the insurer. Also, the amount of money that is covered…such as the FDIC insures $250,000 per depositor, per insured bank, for each account ownership category
Hi Richard – Thank you for your message.
We’ll look into any edits needed to reflect within this review and update accordingly. If you are considering this annuity for yourself, we would be happy to help you understand this product better and get into all of its details.
Please feel free to contact us directly, toll-free, at (888) 440-2468 to chat with one of our annuity specialists or visit https://annuitygator.com/contact/