A flexible premium deferred annuity lets you fund your annuity with multiple premium payments. As a result, you don’t have to make one large lump sum premium payment. You make one initial premium payment, then additional payments at your own pace.

What is a flexible premium indexed annuity?

A flexible premium annuity is an annuity that is intended to be funded by a series of payments. Flexible premium annuities are only deferred annuities; that is, they are designed to have a significant period of payments into the annuity plus investment growth before any money is withdrawn from them.

What is a flexible premium deferred annuity rider?

Any contribution you pay into the flexible premium annuity rider grows over time on a tax-deferred basis until a selected future date (usually at retirement). The flexible premium annuity rider is a fixed annuity, which means it earns a specified interest rate during each guaranteed period.

What is the difference between a single premium and flexible premium payment options in a deferred annuity?

A single premium annuity is an annuity funded by a single payment. Flexible premium annuities are only deferred annuities; that is, they are designed to have a significant period of payments into the annuity plus investment growth before any money is withdrawn from them.

What is flexible premium?

The two main options for annuity premiums are single, meaning you make a one-time lump-sum payment, or flexible, meaning you make several payments over time. So, a flexible premium deferred annuity is an annuity that you pay into incrementally over time and that you defer receiving payments from until a later date.

What is spousal protection in an annuity?

With spousal protection, an IRA account owner can be named annuitant and their spouse co-annuitant; both can be named a beneficiary. As a result, the death benefit will go to the surviving spouse, no matter which spouse passes away first.

What is a flexible premium adjustable universal life policy?

Adjustable life insurance is a hybrid policy that combines characteristics from term life and whole life insurance. Also known as flexible premium adjustable life insurance, the policy has a cash value component that grows with the insurer’s financial performance but has a guaranteed minimum interest rate.

What is a guaranteed minimum maturity benefit?

A guaranteed minimum maturity benefit (GMMB) is a guarantee that provides the policyholder with a minimum benefit on maturity date. A guaranteed minimum death benefit (GMDB) is a guarantee that pays out a minimum benefit upon death during the term of the contract.

Which is a disadvantage to a flexible premium annuity?

There is, however, a disadvantage to a flexible premium annuity. The actual amount of the annuity benefit cannot be determined in advance because there’s no way to determine in advance the amount of each premium that will be paid or how much will be paid in total for the annuity.

What is a deferred premium?

Deferred Premiums — periodic premium payments, usually monthly, at no interest. Used most frequently with casualty coverages.