Deferred Life Annuity

A deferred annuity unlike an immediate annuity has an accumulation phase.

Deferred life annuity. The income you accumulate by paying an affordable monthly premium is often used to supplement Social Security and other retirement savings. A deferred annuity is a contract with an insurance company that promises to pay the owner a regular income or a lump sum at some future date. As the name implies with a lifetime deferred annuity youll receive recurring payments for your entire life.

The ASD is typically years later after the initial premium payment is made often 5 years or more and either a lump sum payment or a number of installment payments may be used to fund the annuity contract. We just have to divide by 13000 to get the answer to the question posed. Take for example a male who purchases an annuity at age 68 and promptly begins to collect a lifetime income of 12000 a year or 1000 a month.

Unlike a 401 k or IRA theres no limit to the amount of money you can put in it in any single year. The accumulation or deferral phase in which the customer deposits or pays premiums and accumulates money into an account. If youre looking for a future source of guaranteed income that will last the rest of your life a deferred income annuity may be right for you.

Our tax deferred annuities provide competitive interest rates that dont subject your savings to the stock markets ups and downs. Unlike premiums for immediate annuities which must be paid in one installment premiums for deferred annuities can be spread over time in a series of payments. What is a Deferred Annuity.

The distribution or annuitization phase in which the insurance company makes income payments until. Just note that when die these payments will cease even if the cost of the annuity hasnt been recouped. The New York Life Clear Income Fixed Annuity-FP Series a fixed deferred annuity with a Guaranteed Lifetime Withdrawal Benefit GLWB Rider is issued by New York Life Insurance and Annuity Corporation NYLIAC a Delaware Corporation a wholly owned subsidiary of New York Life Insurance Company 51 Madison Avenue New York NY 10010.

Then during the distribution or payout phase the accumulated money is converted into a stream of guaranteed retirement income. Single premium deferred annuities are purchased with one sum of money in one payment. You can make contributions in a lump sum or a series of payments in either qualified retirement plans or non-qualified accounts.