Deferred Annuity

Deferred annuities are typically funding with a single lump sum deposit commonly called the "premium". Interest is earned on a tax-deferred basis for as long as you wish. Withdrawals can take place as well. You also have the right (but not the obligation) to "annuitize" the policy any time you choose. When you annuitize, you are electing to convert the value of your annuity (including all the interest earned to date) into a monthly income. This monthly income can be structured to last as long as you live. Creating an income that you cannot outlive is one of the most unique and important features of annuities.

There are three basic types of deferred annuities available. Fixed deferred annuities accumulate interest based on a fixed rate. Variable deferred annuities accumulate interest based on the performance of subaccounts. Equity-indexed annuities grow based on a stock or equity-based index.

If you are looking to maximize your retirement savings, deferred annuities may be just what you've been looking for.

Note: AccuQuote does not sell variable annuities. The information about variable annuities/registered products is provided for educational purposes only.