What Is A Deferred Annuity Policy?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA single premium immediate annuity is the basic annuity. It provides a lifetime of monthly income in exchange for a single premium. A deferred annuity is different in that it provides that the stream of income does not start immediately, but later, and that the company will accept deposits to the annuity until it starts the monthly income payments. The advantage to this plan is that the growth realized in the deferred annuity is free of current income tax.Answered on August 27, 2014flag this answer
5877 POINTSview profileStan Cox IIInsurance Adviser - Broker, SC Insurance Services, Oahu, HawaiiA differed annuity is an annuity that has an accumulation period before it begins to annuitize or pay out the agreed income. Typically these accumulation periods are two, five, seven, or ten years, but may be extended or deferred for longer periods. During the accumulation period you may continue to pay into the annuity and it will also grow by earning interest.Answered on September 21, 2015flag this answer
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