A deferred annuity can be either variable or fixed.
Earnings on a deferred annuity account are taxed only upon withdrawal, providing the annuity with a tax benefit. This type of annuity also provides a death benefit, so that the beneficiary of the annuity is guaranteed the principal and the investment earnings.
For example, an investor may choose to defer annuity payments until she retires.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
deferred annuity — ➔ annuity * * * deferred annuity UK US noun [C] ► INSURANCE an annuity (= yearly payment) in which an insurance company does not begin making payments until an agreed date: »Writing deferred annuities for scheme members who are still in their… … Financial and business terms
deferred annuity — see annuity Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
deferred annuity — /dəfɜd əˈnjuəti/ (say duhferd uh nyoohuhtee) noun an annuity that commences payment at a stated time in the future, that is, the first payment is deferred, usually until the holder s retirement … Australian English dictionary
deferred annuity — an annuity that starts at the end of a specified period or after the annuitant reaches a certain age. Cf. immediate annuity. * * * … Universalium
deferred annuity — deÂ·ferred anÂ·nuÂ·iÂ·ty || dÉª fÉœËd n. annuity that begins at the end of a designated period or after the recipient of the annuity reaches a certain age … English contemporary dictionary
deferred annuity — An annuity in which payments do not start at once but either at a specified later date or when the policyholder reaches a specified age … Accounting dictionary
deferred annuity — An annuity in which payments do not start at once but either at a specified later date or when the policyholder reaches a specified age … Big dictionary of business and management
deferred annuity — noun : an annuity providing for the first payment to be made to the annuitant at some date later than the end of the first year following purchase … Useful english dictionary
deferred annuity contract — An agreement in which the terms require payment to begin after a certain period of time has elapsed; e.g., payment will begin when the annuitant reaches the age of 60. See annuity … Black's law dictionary
Single-Premium Deferred Annuity - SPDA — A type of annuity contract that is established with a single lump sum payment by the owner. The annuity then grows on a tax deferred basis until annuitization. Single Premium Deferred Annuities (SPDA) can be either fixed or variable, and… … Investment dictionary