Our Professional Opinion on Canvas Annuity
We do not recommend buying an annuity from Canvas. Canvas is an insurance agency, and its annuities are issued by Puritan Life Insurance Company of America. Puritan Life has a B++ (Good) financial strength rating from AM Best, which falls below our A− minimum.
Canvas makes it easy to buy an annuity online, and its advertised rates can look attractive. But we would not put our retirement savings with an insurance company that falls below our standard just to get a higher rate. The company backing your annuity matters more than a flashy interest rate.
If you already own a Canvas annuity, do not rush to surrender it. Check your surrender value, remaining charges, and renewal window before deciding whether a change makes sense. Some contracts can renew with surrender charges still in place if you miss the withdrawal window.
You can find links to our individual Canvas annuity reviews below. Contact The Annuity Expert for a free comparison of alternatives from insurers rated A− or higher, or call (770) 755-1565.
Our Review Of Canvas Annuities
Canvas Annuity is the online brand of Puritan Life Insurance Company of America, an insurer with decades of experience. Puritan Life currently holds a B++ (Good) rating from A.M. Best. While this is a passing grade, it falls short of the financial strength ratings of many top competitors, which carry A- or higher ratings. The platform launched in 2020 with a promise to simplify the annuity-buying experience. The entire process is online, quick, and commission-free.
Key Takeaways:
- Canvas Annuities offers a convenient online platform for purchasing annuities.
- Canvas Annuities provides access to Multi-Year Guaranteed Annuities (MYGAs).
- Canvas Annuity offers higher interest rates, appealing to those seeking better investment returns.
Our Canvas Annuity Reviews
Canvas Annuity Customer Service
Customers have generally had positive experiences with Canvas Annuity’s customer service. Representatives have been described as knowledgeable, helpful, and responsive. However, some customers have mentioned occasional difficulties in reaching customer service due to high call volumes or delays in receiving responses to inquiries. Overall, Canvas Annuity strives to provide excellent customer service to address any concerns or questions throughout the annuity purchasing process.
Types Of Retirement Accounts Canvas Accepts
MYGAs Offered By Canvas Annuity
MYGAs are annuities that offer guaranteed rates for a specific period, typically 3, 5, or 7 years. With a MYGA annuity from Canvas Annuity, you can enjoy the benefits of a fixed annuity while having the flexibility to reevaluate your financial needs and investment strategies at the end of the guaranteed rate period.
Canvas Annuity goes a step further in helping clients achieve their specific financial goals by offering the following annuity options:
These products do not include:
- Lifetime income riders
- Market-linked strategies (e.g., S&P 500 indexing)
- Long-term care or terminal illness waivers
Future Fund allows interest withdrawals, but those withdrawals do not guarantee income for life. You can compare an annuity with a guaranteed lifetime withdrawal benefit or an immediate annuity if your goal is a lifetime paycheck. Canvas does not offer a GLWB (Guaranteed Lifetime Withdrawal Benefit) rider.
| Product | How It Works |
|---|---|
| Future Fund | A multi-year guaranteed annuity that locks in an interest rate for a selected term. |
| Forever Fund | An immediate annuity that converts a lump sum into a stream of payments, with lifetime income options available. |
Compare Canvas Fixed Annuity Rates
When selecting an annuity, fixed interest rates are a crucial factor. These rates vary significantly based on the term length and the economic environment. Here’s a comparison of the current fixed interest rates offered by Canvas Annuities and a few other prominent companies:
When selecting an annuity, fixed interest rates are a crucial factor that vary significantly based on term length and the current economic environment. While the table below highlights historical comparisons, you can confidently compare Canvas annuity rates with current market yields on our dedicated rate portal. Here’s a general comparison of how Canvas typically stacks up against other prominent companies:
Surrender Schedules and Withdrawals
- You can withdraw up to 10% of your accumulation value each year, penalty-free, starting day one.
- Withdrawals above that amount during the surrender period will trigger surrender charges. These charges decrease over time until they eventually disappear.
- Renewal terms can restart surrender schedules unless you move the money elsewhere at maturity.
Liquidity Features
- Future Fund generally allows you to withdraw up to 10% of your accumulation value each year without a surrender charge, including during the first year. Taking more than the allowed amount during a surrender-charge period can result in a charge.
- The annuity also includes a waiver that may allow access without surrender charges for qualifying chronic or terminal illness or nursing home confinement. The rider has specific eligibility requirements, and provisions can vary by state.
No enhanced waivers are included, such as:
- Nursing home waiver
- Terminal illness waiver
- Disability waiver
Most other carriers offer these waivers automatically—Canvas does not.
Renewal-Rate Risk
When your MYGA matures, Canvas can automatically renew it into a new term unless you act. The renewal rate may be lower than your initial guaranteed rate. This means you risk being locked into a less competitive rate if you don’t shop around at maturity.
Death Benefit
- Paid as a lump sum to beneficiaries.
- If jointly owned, spousal continuance may be available.
- No surrender charges deducted upon death.
Pros of Canvas Annuity
- High MYGA Rates: Since there’s no broker commission built into the rate, Canvas often offers competitive interest rates.
- Online Simplicity: You can complete the entire application process in minutes without having to speak with anyone.
- Low Minimum Investment: Canvas allows you to start with as little as $2,500, which is far below the industry standard.
- No Fees or Market Risk: Your interest is guaranteed, and your principal is protected.
Cons of Canvas Annuity
- Not Available in All States: Coverage is limited to fewer than 45 states, which leaves many residents without access.
- B++ Financial Strength Rating: Puritan Life has a “Good” rating from AM Best—not strong enough for long-term retirement planning. We recommend working with A-rated or higher carriers.
- High Complaint Ratio: The NAIC complaint index for Puritan Life’s annuity business is over 2x the industry average. That’s a red flag for future service and claims issues.
- No Income Riders: MYGAs don’t offer guaranteed lifetime income. If you need income in retirement, you’ll have to transfer into a better product later.
- No Consumer Advocate Now or Later: Canvas operates without brokers, which means you’re on your own—not just during the purchase but also in the future if your needs change. There’s no one looking out for your interests.
- No GLWB rider: Future Fund does not provide a guaranteed lifetime withdrawal benefit. Taking interest from a MYGA is not the same as receiving a guaranteed paycheck for life.
- Limited product selection: Canvas offers a fixed annuity for growth and an immediate annuity for income. If you want a fixed indexed annuity or a lifetime withdrawal rider, you will need to compare other companies.
Compare Canvas Annuity Income
Determine if Canvas annuity provides the highest income below.
Why Comparing Annuities Matters
Choosing an annuity without comparing options often leads to:
- Lower growth potential
- Weaker guarantees
- Fewer benefits for income or long-term care
- Reduced flexibility in the future
A broker can help you:
- Compare rates, income payouts, and liquidity features
- Access A-rated insurers with stronger financial stability
- Identify products with GLWBs, S&P 500 indexing, and nursing home waivers
- Ensure you get the best outcome at the lowest cost
Do Canvas Annuities Offer GLWB Riders?
No. Canvas does not offer a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. If you want a lifetime income, you must annuitize the contract at the end of the term or transfer into another annuity with an income rider.
What You Give Up vs. Top FIAs and MYGAs
| Feature | Canvas Annuity | Top FIAs / MYGAs |
|---|---|---|
| Financial Strength | B++ rated carrier | Typically A- or higher |
| Income Options | Future Fund does not have a GLWB. Forever Fund offers immediate payment options, including lifetime income. | Some fixed indexed annuities offer GLWBs; immediate annuities can also provide lifetime payments. |
| Death Benefit | Basic account value | Many include enhanced death benefits or spousal continuance |
| LTC or Crisis Waivers | Future Fund includes a surrender-charge waiver for certain qualifying health events. | Waivers vary by insurer and contract. |
| Renewal Terms | Auto-renewal, potential lower rates | Wider range of rollover or conversion options |
| Distribution | Direct-to-consumer online | Broker-assisted with multiple carrier comparisons |
Who Should Buy a Canvas Annuity?
This annuity might be suitable for:
- People looking for a short- to medium-term savings product with guaranteed interest
- Tech-savvy individuals that are comfortable buying without advice
- Those who only need a simple MYGA for 3–10 years
This annuity is not suitable for:
- People who want to work with top-rated carriers for added financial strength and long-term stability
- Anyone needing a guaranteed lifetime income or an inflation-adjusted income
- Retirees seeking a stable income and protection for their spouse or beneficiaries
- Consumers who want an expert to help them compare annuity options
Bottom Line
Canvas Annuity is a fast and easy solution if you know exactly what you want and don’t need help. But that convenience comes at the cost of personalized advice, stronger financial backing, and future flexibility. With no advocates guiding you through the purchase or helping you make changes later, you’re on your own.
Canvas Annuity is a good option if:
- You want a short- to mid-term fixed annuity
- You prefer a digital, no-agent experience
- You’re comfortable with a B++ rated carrier
However, you give up:
- Access to top-rated insurers
- Lifetime income guarantees
- Traditional index growth
- Professional guidance and strategy
Should You Buy a Canvas Annuity?
We would not recommend buying a Canvas annuity. Puritan Life’s B++ AM Best rating falls below our A− minimum, and we would rather compare products from stronger insurance companies.
Canvas may offer attractive rates and a convenient online application. Neither changes the company standing behind the guarantee. We would not choose an annuity just because it is easy to buy or advertises a higher rate.
If you already own a Canvas annuity, review your surrender charges, renewal date, and benefits before making a change.
Don’t go it alone. We can help you compare Canvas to better options from A-rated carriers.
Let us show you how much more you can get—whether you’re looking for income, growth, or legacy planning.
Contact The Annuity Expert for free quotes and help choosing the right annuity for your goals.
Book A Free Consultation
Get help from a licensed financial professional. This service is free of charge.
Let Us Answer Your Questions
Not quite ready for a meeting, but you have a question that needs answering? We’re happy to help. Leave an inquiry below, and one of our staff will respond via email.
Questions From Our Readers
Is the Canvas no-fee 3–7 year tax-deferred or Roth annuity at 6–6.2% APY legit, and is it a good idea?
The Canvas annuity offers high fixed rates—6% for 3 years, 6.15% for 5 years, and 6.2% for 7 years—with no annual fees, functioning much like a multi-year guaranteed annuity (MYGA) or a bank CD. It allows tax-deferred growth or Roth funding, 10% annual penalty-free withdrawals, and full access at maturity. The rates are strong, but the insurer, Puritan Life, is rated B++ and under review for a private equity acquisition, which raises stability concerns. State guaranty coverage usually protects up to $300k, but you should confirm your state’s rules and avoid exceeding limits. If you want stronger financial backing, consider a similar MYGA from an A-rated insurer, or move into a fixed indexed annuity (FIA) with a GLWB for guaranteed lifetime income instead of just fixed-term interest. This would protect your principal, give upside potential, and lock in a contractual income guarantee today.
Related Reviews
- Pacific Life Pacific Income Provider
- Fidelity and Guaranty Safe Income Advantage Annuity
- Midland Income Planning Annuity
- Integrity Life Income Source Annuity
- Symetra Freedom Income Annuity
- Lincoln Financial Insured Income Annuity
- Allianz Benefit Control Annuity
- Nassau Protection Choice Annuity
- Nationwide Income Promise Select Annuity
- EquiTrust Market Power Bonus Index Annuity
- Is the Transamerica B-Share Variable Annuity Any Good?
- Is Thrivent Multi-Year Guarantee Annuity (MYGA) Any Good?
- Athene Agility Annuity
- Athene Max Rate Fixed Annuity
- TIAA
- Is The FERS Annuity a Good Idea
- Are Fidelity Annuities Any Good?
- Transamerica Annuity Review
- Are North American Life Insurance And Midland National Reliable Annuity Companies?
- Are State Farm Annuities Any Good?
- Are New York Life Annuities Any Good?
- Is The IncomeShield 10 Fixed Index Annuity Any Good?
- American Equity Annuity Reviews
- Is Oceanview Life And Annuity A Good Annuity Company?
- Is Allianz Core Income 7® Annuity with Core Income Benefit Rider Any Good?
- Is Jackson Fixed Annuities Any Good?