Sunday, September 30, 2018

What is a 'Deferred Annuity'?

A deferred annuity is a type of annuity contract that delays income, installment or lump-sum payments until the investor elects to receive them.
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Deferred Annuity
A deferred annuity is a type of annuity contract that delays income, installment or lump-sum payments until the investor elects to receive them. This type of annuity has two main phases: the savings phase, which is when you invest money into the account, and the income phase, which is when the plan is converted into an annuity begins paying the account owner. A deferred annuity can be variable or fixed.
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Brett Sause
CEO & Principal
Atlantic Financial Group LLC
Easton, MD

www.atlanticfinancialgroup.org/
Breaking it Down:
A deferred annuity is a contract between an individual and a life insurance company in which funds are exchanged for... Read More
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Related Definitions
Split-Funded Annuity
A Split-Funded Annuity uses a portion of the principal to fund immediate monthly payments and the remaining portion to fund a deferred annuity. Read More
Single-Premium Deferred Annuity (SPDA)
A single-premium deferred annuity (SPDA) is an annuity established with a single payment featuring investment growth solely during the accumulation phase. Read More
Variable Annuity
A variable annuity is a type of annuity contract that allows for the accumulation of capital on a tax-deferred basis. Read More
Delayed Annuity
A delayed annuity is an annuity in which the first payment is not paid immediately, as in an immediate annuity. Read More
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