Deferred Payment Annuity

Dictionary Says

Definition of 'Deferred Payment Annuity'

An annuity where the payments received will start some time in the future, as opposed to starting when the annuity is initiated. An annuity is a financial contract that allows the buyer to make a lump-sum payment, or a series of payments, in exchange for receiving future periodic disbursements. A deferred payment annuity allows the investment to grow both by contributions and interest before payments start coming back. Also known as a deferred annuity.

Investopedia Says

Investopedia explains 'Deferred Payment Annuity'

Deferred payment annuities typically offer tax-deferred growth at a fixed or variable rate of return, just like regular annuities. Often deferred payment annuities are purchased for under-age children, with the benefit payments postponed until they reach a certain age. Deferred payment annuities can be helpful in retirement planning.

Video Definition


Search results for

'Deferred Payment Annuity'

  • Deciphering Deferred Annuity Designations

    http://www.investopedia.com/articles/pf/06/ownerannuitant.asp
    ... When you purchase a tax-deferred annuity, you have to name three parties: The owner ...
    if they annuitize the contract, a portion of each annuity payment will be ...
  • What Are Deferred Annuities?

    http://www.investopedia.com/video/play/understanding-deferred-annuities
    Videos /. What Are Deferred Annuities? Next video: Understanding Book Value. Learn
    how this annuity can provide you a steady stream of income for retirement. ...
  • Break Out Of Annuity Prison

    http://www.investopedia.com/articles/pf/07/annuities.asp
    ... you could let the balance grow tax-deferred or even ... and receive a more appropriate
    type of payment. For more information on annuity payment plans, check out ...
  • Series 26 Study Guide - Variable Contracts - Types and Valuation ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/types-variable-annuities.asp
    ... The annuity pays out its benefits at a later date and is referred to as a
    periodic-payment deferred annuity. Advertisment - ExamPrep continues below. ...
  • Series 6 Study Guide - Variable Contracts - Types of Variable ...

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/types-variable-annuities.asp
    ... quarterly or annually. The annuity pays out its benefits at a later date
    and is referred to as a periodic-payment deferred annuity. ...
  • 20 Investments: Annuity | Investopedia

    http://www.investopedia.com/university/20_investments/2.asp
    ... on the performance of your annuity investment portfolio ... this portfolio determines
    the annual payment you will ... Deferred annuities allow you to enjoy the benefits ...
  • Annuities: How To Find The Right One For You

    http://www.investopedia.com/articles/retirement/09/choosing-annuity.asp
    ... One of the major benefits of an annuity is that it allows ... you do retire, you can
    take a lump sum payment or you ... able to build up money on a tax-deferred basis. ...
  • Getting the Whole Story on Variable Annuities

    http://www.investopedia.com/articles/04/111704.asp
    ... and tax-deferred annuities. With an immediate annuity, you make a lump-sum deposit
    and the insurance company guarantees an immediate monthly payment until your ...
  • Live Longer, Retire Younger: Can You Do It?

    http://www.investopedia.com/articles/retirement/07/insureretirement.asp
    ... deferred and immediate annuities. As with a deferred annuity, your payment
    accrues earnings on a tax-deferred basis. This is called ...
  • Series 6 Study Guide - Taxation Issues - Tax Treatment of Variable ...

    http://www.investopedia.com/exam-guide/finra-series-6/taxation-issues/tax-treatment-variable-annuity-contracts.asp
    ... Tax-Deferred Earnings While annuities are in the accumulation ... Each payment is adjusted
    by an exclusion ratio ... the total expected return under the annuity contract ...

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