Deferred annuities are annuities that do not provide immediate income. One places money into these annuities by paying a premium and the that premium becomes cash surrender value in the annuity. The cash value then accumulates at an interest rate specified within the contract.
The contract owner will have the option to turn the cash into a guaranteed income stream at a later date, or surrender the annuity for it's accumulated cash value.
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The contract owner will have the option to turn the cash into a guaranteed income stream at a later date, or surrender the annuity for it's accumulated cash value.