Life · Chapter 9 · Premium & Timing Classes
Flexible Premium Deferred Annuity (FPDA)
Definition
Periodic premiums that vary in amount — the owner contributes what they can and may even skip payments; future income reflects the total saved. The most popular annuity sold today: little or no front-end load, but usually back-end (surrender) charges.
Exam tip
Anyone still paying periodic premiums can NEVER have immediate income — immediate = single premium only.
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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