Get Flexible Premium Deferred

The two main options for annuity premiums are single, meaning you make a one-time lump-sum payment, or flexible, meaning you make several payments over time. So, a flexible premium deferred annuity is an annuity that you pay into incrementally over time and that you defer receiving payments from until a later date.

Flexible Premium Annuity Features & Benefits An Interest Account with a guarantee of your principal and previously credited interest to protect against market risk. A diverse choice of Separate Account investment funds. ... Interest and any investment earnings accumulate on a tax-deferred basis until withdrawn.

Single premium annuities are often funded by rollovers or from the sale of an appreciated asset. A flexible premium annuity is an annuity that is intended to be funded by a series of payments.

A deferred premium is a payment for a policy that is not yet due. This will be paid on either a monthly, quarterly, or semi-annual basis. A deferred premium serves as a payment scheme for policyholders who cannot afford to pay their premium on an annual basis.

The primary disadvantages of deferred annuities are cost, flexibility, and complexity. There can be higher charges and fees than other investment vehicles, and there are typically surrender charges, meaning that you have to pay penalties if you want to access your money before a certain period of time.

An immediate annuity begins paying out as soon as the buyer makes a lump-sum payment to the insurer. A deferred annuity begins payments on a future date set by the buyer.

Tax-deferred annuities are popular for a good reason—they offer massive benefits to retirees. Annuities can help you grow your retirement savings. They're tax-deferred, so you only pay taxes when you withdraw funds. Plus, an annuity can provide you with guaranteed lifetime income.

A kind of annuity contract that allows periodic additional premium deposits. After establishing the annuity with an initial deposit, further premium can be added to the policy at later dates.