Subsection 304(2)
Paragraph 304(2)(b)
Administrative Policy
17 May 2013 CLHIA Roundtable Q. , 2013-0481391C6
The correspondent described two annuity contracts that specified a lump-sum payment on the individual's death, provided that the sum of annuity payments received before death did not exceed the one-time premium paid at the outset. The only difference between the contracts was that the first specified larger annuity payments, so that the lump-sum was mathematically certain to become payable either before the individual turned 88 or not at all. Under the second, the sum could be payable as late 93 years of age. CRA stated that, provided the conditions of s. 304(2)(b) were otherwise met, the first contract would qualify as a prescribed annuity contract and the second would not.