Our Professional Opinion on the Canvas Forever Fund
We do not recommend the Canvas Forever Fund for new purchases. The Forever Fund is a single-premium immediate annuity issued by Puritan Life Insurance Company of America, which is rated B++ by AM Best. That rating is below the A- or better standard we prefer for an income promise that may need to last for decades.
Canvas is not an annuity company we recommend for long-term income. Puritan Life’s B++ rating may be acceptable for a meaningfully higher short-term MYGA under certain circumstances, but that exception does not make sense for an irrevocable lifetime-income contract.
Forever Fund offers several useful payout choices, including single-life income, joint-life income, life with a guaranteed period, term-certain income, cash refund, installment refund, and an optional annual payment increase. Payments can begin in as little as 30 days.
The period-certain option could solve a legitimate planning need. A 5-, 10-, 15-, or 20-year payment period can create a temporary income bridge before Social Security or another retirement-income source begins. However, we would rather purchase that bridge from an A- or better-rated insurer.
A SPIA may also make sense for an early retiree using non-qualified money before age 59½ or for Medicaid planning when the contract is specifically structured to meet state requirements. Forever Fund should not be assumed to qualify as a Medicaid-compliant annuity without a state-specific review.
The direct online purchasing process is convenient, but it creates a comparison problem. Canvas shows you the Canvas product. It does not independently determine whether an A-, A, or A+ insurer will pay more for the same age, premium, state, start date, payment frequency, joint-life structure, and beneficiary protection.
The absence of commissions or account fees does not automatically mean the contract provides the highest payout. SPIA pricing is built into the payment offered. The only meaningful comparison is the guaranteed income from the same payout option across multiple insurers.
The contract also becomes irreversible after the 30-day review period. Forever Fund has no cash value and cannot be surrendered once issued. The selected income start date generally cannot be changed. Life-only payments stop at death, while refund, guaranteed-period, joint-life, and increasing-payment options protect the family but generally reduce the starting income.
The optional annual increase is not automatically better. It begins with a lower payment, so the level and increasing choices should be compared using cumulative income and the break-even year. The contract also does not replace long-term care insurance.
Bottom line: Forever Fund has a clean online process and flexible payout choices, but we would not place a long-term income guarantee with a B++ insurer when stronger companies are available.
What We Like
- Fast Income Start: Payments can begin in as little as 30 days.
- Single- and Joint-Life Choices: Income can cover one person or continue while either joint annuitant is living.
- Period-Certain Choices: Payments can be guaranteed for 5, 10, 15, or 20 years.
- Refund Options: Cash-refund and installment-refund choices can protect unpaid premium for beneficiaries.
- Optional Increasing Payments: Buyers can select a contractual annual increase to help address inflation.
- Simple Online Application: The direct application process is convenient and does not require paper forms.
- No Explicit Commission or Account Fee: The contract does not advertise a separate commission, annual account charge, or rider fee.
What We Don’t Like
- B++ AM Best Rating: Puritan Life falls below the A- minimum we prefer for long-term income guarantees.
- No Independent Market Comparison: Buying directly from Canvas does not show whether a stronger insurer offers a higher payout.
- No Cash Value or Surrender Rights: The contract cannot be surrendered after the 30-day review period.
- The Income Date Is Generally Fixed: The selected start date cannot normally be changed after purchase.
- Life Only Can Leave Nothing to Beneficiaries: Payments end when the annuitant dies.
- Additional Guarantees Reduce Income: Refund, guaranteed-period, joint-life, and increasing-payment options generally lower the starting payout.
- A SPIA Does Not Automatically Pay More: A competitive GLWB may provide equal or higher income while preserving an account value, liquidity, and legacy potential.
The Forever Fund: A No-Fee Immediate Annuity
Retirees without pensions often want an income source that is simple, reliable, and immune to market downturns. The Forever Fund positions itself as a straightforward, no-fee immediate annuity that starts paying income right away. It appeals to those who dislike hidden costs and want transparency, but it comes with trade-offs that buyers should understand.
If you are looking to grow a lump sum over a set term, you can compare its traditional fixed products on our website against Canvas’s annuity rates with its competitors. However, if you are specifically looking to turn your savings into an immediate income stream, keep reading to understand the features, pros, and cons of the Forever Fund and compare it with its competitors’ income annuity rates.
How The Canvas Forever Fund Works
The Forever Fund is a new immediate annuity issued by Puritan Life Insurance Company of America under the Canvas brand. You make a single lump-sum premium payment, and income begins right away—monthly, quarterly, or annually—depending on your preference. Unlike deferred annuities, there is no accumulation value; the purpose is to provide guaranteed income starting now.
Funding Sources
- Non-qualified money (cash or savings): Only the gain portion is taxable, thanks to the exclusion ratio.
- Traditional IRA or 401(k) rollovers: Payments are fully taxable as ordinary income.
- Roth IRA rollovers: Payments are tax-free if IRS rules are met.
Key Features
- Multiple payout structures: Single Life, Joint Life, Period Certain, Cash Refund, and Installment Refund.
- 3% annual increase option: Helps offset inflation but may lag behind actual inflation.
- 30-day free-look period: Cancel within 30 days if you change your mind.
- No commissions, account charges, or fees: Every dollar goes toward generating income.
- Issued by: Puritan Life Insurance Company of America (AM Best B++ rating).
The Size and Rating of Canvas/Puritan Life
One of the biggest considerations with the Forever Fund is the issuer itself. Canvas is the brand, but the annuity is issued by Puritan Life Insurance Company of America. Compared to larger, established annuity providers, Puritan Life is a very small company with a limited footprint in the retirement income space.
- AM Best Rating: B++ (“Good”). While not poor, this is below the A- or higher ratings we recommend for long-term income security. Most top competitors are rated A or A+.
- Implications of a Lower Rating: A lower rating suggests less financial strength and smaller reserves compared to large insurers. This doesn’t mean they will default, but it increases risk over a multi-decade payout horizon.
- Scale Matters: Large carriers typically have diversified product lines, bigger capital reserves, and a proven history of managing annuity liabilities. Smaller carriers may offer competitive payouts, but they can’t match the security profile of the biggest insurers.
For retirees depending on income for life, insurer strength is just as important as payout rates.
Understanding Payout Options
For first-time readers, here’s what the payout choices mean:
- Single Life: Income lasts for your life only; it stops at death.
- Joint Life: Continues until the second spouse dies.
- Period Certain: Pays for a fixed number of years (e.g., 10 or 20) whether you live or not.
- Cash Refund: If you die before receiving payments equal to your premium, your beneficiary receives the difference.
- Installment Refund: Beneficiaries continue receiving payments until the original premium has been fully returned.
Pros vs. Cons
Pros
- Contractually guaranteed lifetime income for life payout options.
- Transparency: No commissions or hidden fees.
- Flexibility: Multiple payout choices to protect a spouse or leave money to heirs.
- Optional inflation bump with a fixed 3% annual increase.
- Simplicity: No management required once income begins.
Cons
- Irrevocable decision: Once you start, you cannot access the lump sum.
- Inflation risk: A fixed 3% increase may fall behind real-world inflation.
- Lower insurer strength: B++ rating, below the A-rated standard.
- Small carrier: Less scale and diversification than major insurers.
- No account value: Unlike deferred fixed or indexed annuities, there’s no pool of money to withdraw from.
- Opportunity cost: Locks you into today’s rates; if interest rates rise, you miss out.
Why A GLWB Rider Is Often Better
A Guaranteed Lifetime Withdrawal Benefit (GLWB) rider—commonly available on Fixed Indexed Annuities (FIAs)—usually provides a better long-term solution than the Forever Fund. Here’s why:
- Income + Liquidity: GLWBs let you withdraw lifetime income while still maintaining access to your account value. The Forever Fund locks up your principal permanently.
- Beneficiary Protection: With a GLWB, your heirs inherit any unused account balance. With the Forever Fund, heirs only benefit if you choose a refund or period-certain option.
- Potential for Growth: FIAs credit interest linked to market indexes (with principal protection) or a fixed interest rate. This allows income bases to grow before withdrawals begin, often resulting in higher lifetime payouts.
- Flexibility: You can delay starting income, change beneficiaries, or even surrender if your needs change. None of these is possible with the Forever Fund once income begins.
- Stronger Carriers: Most competitive FIAs with GLWBs come from A-rated or higher insurers, offering greater long-term security.
Comparison: Forever Fund vs. FIA with GLWB
| Feature | Canvas Forever Fund | FIA with GLWB Rider |
|---|---|---|
| When income starts | Immediately after purchase | Flexible—start when you want |
| Access to money | None (except refund options at death) | Account value remains available |
| Heirs/legacy | Limited (refund or certain options only) | Full account value passes to beneficiaries |
| Inflation protection | Fixed 3% annual increase (optional) | Some offer increasing income linked to index growth |
| Growth potential | None (pure income only) | Yes—linked to index credits (with principal protection) or a fixed interest rate |
| Insurer strength | B++ rated small insurer | Typically A- or better carriers |
| Flexibility | Irrevocable once income begins | Can adjust withdrawals, defer income, or surrender |
| Best for | Retirees who want income immediately with no complexity | Retirees who want lifetime income plus flexibility and legacy |
Our Opinion
The Canvas Forever Fund offers simplicity and transparency, but it comes at the cost of flexibility, liquidity, and insurer strength. Since it’s issued by a smaller, lower-rated carrier, the risk profile is higher than many alternatives. For most retirees, a Fixed Indexed Annuity with a GLWB rider from an A-rated company provides better long-term income, stronger financial backing, and more control.
👉 Contact The Annuity Expert for free quotes to compare the Canvas Forever Fund against A-rated annuities with GLWB riders. Even a small difference in insurer strength or payout rate can mean thousands of dollars in additional retirement income and far greater security.
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