Yes, I have claimed the financial hardship in the past. You fill in the form and the bank processes it.
Because the bank processes it, there are not many checks on what exactly your income is, AND actually, that current year you are mid-year for income so how can they check anyway?
The amount you receive tops you up to the maximum amount (in your case $41k?). You withdraw more than that amount to account for taxes being paid.
You can also take out money in BC to pay your rental deposit, or medical, or for life medical condition, or if you emmigrate.
Some provincial rules let your close out a small LIRA even if you have a second one that would put you above the cap for small accounts, some provinces state about the total in all the LIRAs, and the amount of the cap increases after a set age (50, 55, 65, etc depending on province).
So - find a way to get your net income below the cap (TFSA?), and draw it down over a couple of years until you can close it out. Also, put your more conservative investments for your chosen AA there so it doesn't grow as fast. Note, you can also create a LIRA early and draw out $2k/yr for the pension tax credit (income tax free in other words), so this could be good for you.
Yes you can claim financial hardship and draw from both, but technically, to one total limit? But I don't think there is any cross-checking in place, really.
Annunities could pay out a lot by the time you are 80? They can't always be a low interest option, right? I think they are like 1.3% right now.