Frequently Asked Questions

A fixed annuity is a type of insurance contract that pays the buyer a specific fixed interest rate on their premium. Fixed annuities are the least complex type of annuity. Insurance companies use premium funds to invest, and in return, pay buyers a fixed interest rate on their premium. As long as you keep the funds in your annuity for the length of the contract, you will always receive back your premium plus your guaranteed rate of interest.

Fixed annuities offer a fixed interest rate that is not subject to stock market volatility, so it is considered a safer investment. Fixed annuities usually fall into two categories; they are either focused on accumulation or annuitization. The Future Fund is accumulation focused, meaning it provides competitive interest rates that let you accumulate money quickly. The Forever Fund is an annuitization focused annuity, meaning it provides competitive payouts that do not change based on the stock market or underlying investments.

Fixed annuities generally have the least risk among different types of annuity products. When you purchase a fixed annuity, you lock in a guaranteed interest rate for the length of the contract term you choose. This rate cannot be affected by external factors like stock market changes, which help keep your premium and earnings secure.

When you put your money into an annuity the interest you are credited accumulates tax deferred until you withdraw your money. Similar savings instruments such as savings accounts or bank CDs are not tax deferred, meaning you have to declare your gains as taxable income each year. Tax deferral is a benefit for everyone since your interest is compounding, however the greatest benefit is for those who may currently be in a higher tax bracket. Putting money in the annuity and waiting to withdraw funds when in a lower tax bracket (perhaps due to retirement) can get you the best tax benefits.

There are no additional tax deferral benefits for qualified annuities, since the funds were already growing tax deferred.  When an annuity is owned by a non-natural person (like a trust or corporation) some of the tax-deferral benefits may be lost.

At the end of your contract term, you will have a 30-day window to withdraw your money without any surrender charges. You can choose to have your annuity paid out all at once, schedule payments for a predetermined period, or schedule payments for your entire lifetime. If you do not act during the 30-day window, your annuity will automatically renew into a new term with updated rates and a new surrender charge schedule.

You can view the most recent rates for a Future Fund annuity on the Future Fund product page Find the current rates for 3-, 5-, or 7-year terms that will lock in for the length of your contract.

Yes, interest rates are guaranteed for your annuity when you purchase the Future Fund. Current available rates will be locked in for the duration of the contract you select.

Canvas offers Future Fund fixed annuities with term options for 3, 5, and 7 years.

It can be helpful to choose an annuity term that ends before you anticipate needing your funds and provides the most dependable growth for the term length. For example, purchasing Future Fund annuity with a longer term has the potential to earn more money at higher crediting rates—a great option if you are fairly certain you will not need access to your funds until after the contract term. In addition, with the Future Fund, you can withdraw up to 10% of your Accumulation Value annually without surrender charges. A Future Fund annuity also includes a free Waiver of Surrender Charges (WSC) Rider so you can withdraw your funds without surrender charges if you are diagnosed with a critical or terminal illness or are confined to a nursing home during the contract (subject to WSC rider terms).

No, your crediting rate for your Future Fund annuity will not change if you take your penalty-free withdrawal each year—it’s locked in for your contract term. However, since interest is credited daily based on your accumulation value, withdrawing money reduces your accumulation value, which means less interest will be credited over the life of the contract.

If you renew for another term after your first with a Future Fund annuity, your crediting rate may change, but it will never go below the guaranteed minimum interest rate stated in your contract. For policies issued in 2025, the minimum guaranteed crediting rate is 2.7% for the life of the policy, for policies with an issue date in 2026, your guaranteed minimum interest rate is 2.45%.

With the Future Fund, you can withdraw up to 10% of your accumulation value each year without penalty. If you withdraw more than that, surrender charges will apply to the amount that exceeds the penalty-free limit, based on the surrender charge schedule.

Yes, you could lose part of your principal to surrender charges if you withdraw more than the 10% penalty-free amount during your contract term. The surrender charge depends on the contract year and the amount withdrawn. However, with the Future Fund, you may not incur surrender charges if you become critically or terminally ill or are confined to a nursing home, as outlined in the contract terms.

The Future Fund comes with a free Waiver of Surrender Charges (WSC) Rider. This feature allows you to withdraw your funds without surrender charges if you’re diagnosed with a critical or terminal illness or are confined to a nursing home during your contract term (subject to the WSC rider’s term).

Fixed annuities provide a guaranteed minimum interest rate for earnings during the contract term and have various options for payment at the end of the term, including the option to receive payments for the rest of your life. Bank CDs or high yield savings accounts do not offer lifetime income payout options, do not generally have minimum guaranteed interest rates, and perhaps most importantly, do not grow tax deferred. Bank CDs and savings accounts generally cannot compete with the interest rates offered by annuity issuers.

A crediting rate is an interest rate earned on principal and interest, expressed as an effective annual yield.

Accumulation Value of the Future Fund is the amount of your single premium payment, plus any interest credited, less any premium tax, prior partial surrenders, and associated surrender charges.

The beneficiary of a Future Fund is the person who receives proceeds of the policy when the policy owner passes away.  In the case of a non-natural owner, such as a trust or corporation, the beneficiary would receive proceeds when the annuitant passes away.

The Future Fund is an owner-driven policy, so if the owner passes away during the contract term, a death benefit is paid to the designated beneficiary or beneficiaries. If the owner elects to annuitize, and if a lifetime income option is chosen, the payments will be based on the annuitant’s age and sex. Annuitization options are available in your contract or provided by Canvas customer service upon request.

You can take withdrawals from your Canvas Future Fund policy at any time. If the total of your withdrawals exceeds 10% in any year, you will be subject to a surrender charge on the excess amount. No surrender charges are levied on RMD withdrawals

No, your beneficiary will not be charged a surrender charge upon your death.

The Future Fund is owner-driven.  In an owner-driven annuity, the contract ends upon the owner’s death, and the beneficiary receives the remaining value, regardless of whether the annuitant is still living.

The death benefit on the Canvas Annuity will be equal to the Accumulation Value on the date of death without surrender charges.

At the end of the initial term, you will have several options: withdraw your funds, renew your policy for another term, or do nothing. If you choose to withdraw your funds, you will have 30 days at the end of the initial term to do so without incurring any surrender charges. If you do not make a selection or choose to renew your policy, your policy will renew one time into another 3- or 5-year term, and the surrender charges will continue at the decreasing amounts shown on the surrender charge schedule. If you have selected the 7-year term, your policy will renew into 1-year terms with no surrender charges at the end of the 7^th year.

We have different contract terms so you can choose the contract length that’s best for you. By leaving your money in the contract for the full term, you are guaranteed to get your money back plus the interest you earned. We also know that life isn’t always predictable and so we have designed different ways for you to access your money early if you need to. Our Future Fund comes with a Waiver of Surrender Charges Rider, free of charge. If, after you purchase, you need the funds because you are diagnosed with a chronic illness, are confined to a nursing home, or are diagnosed with a terminal condition*, you can receive your full accumulation value with no surrender charges.  We also allow you to withdraw 10% of your Accumulation Value each year, without surrender charges.

 *Subject to the terms and conditions found in the Waiver of Surrender Charges rider attached to your contract.

No, we designed the Future Fund to be as simple and straightforward as possible, so there is no market value adjustment (MVA) on your contract.  An MVA can add additional surrender charges to a contract depending on the difference in the value of an external index when you purchased the contract and surrender the contract.

Converting your Future Fund into a series of periodic income payments is called annuitization. There are several annuitization options you can choose from, but most people choose to take a lump sum at the end of their contract term or roll their funds into another contract term.

Canvas products are available in 45 states and Washington, D.C. To check if we’re available near you, visit our product page and use the drop-down menu in our quoting tool to check for annuities in your state. If your state isn’t listed, don’t worry—we’re working to expand and bring Canvas products to you soon!

Purchasing a Canvas annuity is simple and can be done online. If you’re funding your annuity with a checking or savings account through an automated clearing house (ACH), use our Fast Application which can take less than 10 minutes. For annuities owned by an entity or for those being funded with an IRA or 401(k), use our Applicant Portal, where our licensed agents will guide you through the process. Apply online today!

A rider fee on an annuity is the cost for adding extra benefits to your annuity contract, like protection against inflation or investment losses. These fees typically range from 0.25% to 1% (sometimes higher) and are deducted from your account value monthly or annually.  There are no rider fees on a Canvas Annuity because we don’t charge for added benefits.

You can purchase a Canvas Annuity online using your checking or savings account or you can transfer or rollover funds from another source (generally a 401(k), annuity, or IRA).

Yes, a trust can be the owner of a Canvas Annuity. In this situation, the issue age is based on the annuitant’s age. Please note: Trusts and other entities can only be the owners of non-qualified annuities. If a trust is the owner, it must also be the beneficiary.

The Canvas Annuity is a single-premium annuity, meaning your annuity will be funded by a single premium at the beginning of the contract term. If you have additional funds you would like to put into a Canvas Annuity, you will need to complete an additional application.

There are no commissions which is why we can offer such great rates!

Canvas does not charge any annual fees or policy fees and pays no commissions to anyone when you purchase your policy. You may be subject to applicable IRS and state income or premium taxes.

You don’t! With smart use of modern technology, Canvas has revolutionized the annuity buying process and gives you the power to buy your own annuities directly. Check out our products page to read more. However, if you have questions, feel free to pick up the phone and talk to one of our licensed, non-commissioned agents.

Puritan Life Insurance Company of America issues the Future Fund and Forever Fund annuities, offered by Canvas. Puritan Life is rated B++ (stable) by AM Best and has been a trusted insurance company issuing insurance policies since 1958.

It is important that you review the financial stability of the insurance company you choose to partner with. Puritan Life has an AM Best rating of B++ (stable), indicating the company’s solid financial strength and ability to meet future policy holder obligations. 

Immediately after purchasing, you will be prompted to register for your customer portal account where you will be able to check the status of your application and policy. If you don’t register for your account at this time, you will have another opportunity to do so once your policy has been issued.

Yes, you have 30 days after your policy is issued to review your policy. If you decide to return your policy for any reason during that 30-day period, you will receive your entire premium back, no questions asked.

You can log into the Canvas Customer Portal to make updates to your account information. If you need to make a change before your policy is issued, please contact us at (888) 970-3556.

The Canvas Customer Portal updates daily. Log in anytime to view your account.

If your Canvas Annuity has been issued and have questions about your policy, please contact our customer service team at (844) 465-0361. If you have questions about the application process, please contact our non-commissioned, licensed representatives at (888) 970-3556. Learn more about our team here.