An annuity that delays income payments until the holder chooses to receive them.
An annuity that can be paid either with a single premium or with a series of installments and includes a schedule of periodic income benefit payments to commence after an accumulation period (more than one year). Because the inside build-up on life insurance products is tax-deferred, deferred annuities have become a very popular vehicle for retirement savings and tax planning. Deferred annuities can either be sold on a single-premium (SPDA) or flexible-premium (FPDA) basis.
Used to accumulate retirement savings; taxes are paid when the money is withdrawn, whether as a lump sum or in payments.