|
Life insurance is used to create an
estate for an individual if he or she dies too soon. A deferred
annuity provides protection against the possibility that an
individual will live too long and outlive his or her accumulated
assets. In addition to providing lifetime income, deferred
annuities can also be used as a means to accumulate funds
for a specific purpose, such as a child's education. The Glatfelter
Agency can help you select the appropriate plan for your needs.
Types of Deferred Annuities
A deferred annuity is an annuity in which taxation of interest or other
growth is deferred until it is actually paid. During the period before a policy is annuitized or completely liquidated, the funds invested
by the policyholder are put to work. Depending on the type of annuity, the underlying investment
vehicle will vary. Investment vehicle options include fixed annuities and equity-index annuities.
There are several different ways to classify deferred annuities.
Method of purchase
Annuities can be purchased with a single lump sum of cash; such annuities are often referred
to as single premium annuities. They may also be purchased with installment payments over time,
either of a fixed dollar amount on a regular basis or with flexible payments.
When annuity payments begin
Payments under a deferred annuity typically begin at some future time. One variation, an
immediate annuity, is purchased with a single premium, with annuity payments beginning
one payment period later.
For more information on how The Glatfelter
Agency can help, please contact us by calling 800-632-1884
or if you prefer, submit a request on-line
for more information.
|
