A Life Income Fund (LIF) lets you convert locked-in RRSPs or Locked-In Retirement Accounts (LIRA) to income, offering a more flexible alternative to a life annuity. These plans contain "locked-in funds", meaning money that was withdrawn from a company pension plan when a pension plan member left the plan prior to retirement; locked-in funds are subject to limitations on withdrawals.
A LIF operates like a RRIF in that you must withdraw a minimum amount from your LIF each year. But unlike a RRIF, there is a limit placed on the maximum amount you can withdraw each year. The aim of this legislated amount is to ensure that the LIF provides income for life.
The CIBC LIF GIC allows you to safely lock in your investment for 6 months to 5 years, with guaranteed principal and interest.