Life · Chapter 9 · Premium & Timing Classes
Deferred Annuity
Definition
Income begins more than one year after purchase. Can be funded with any premium plan (single, level, or flexible) and includes an accumulation period with tax-deferred growth. At payout time the owner has three choices: lump-sum distribution (credited interest is taxable), systematic withdrawals, or annuitization.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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