What is a deferred annuity?  
A deferred annuity is one in which the annuity payments will commence only at the end of a specified period of years.

The specified period of years is known as the deferred period. The purchase price may be paid either by premiums during the deferred period or by a single lump sum payment at the start.

Premiums are usually refundable with or without interest if the annuitant dies during the deferred period. In addition, there will be surrender values available during the deferred period.

Like immediate annuity, depending on period of payments, a deferred annuity may also be classified as life, guaranteed or period certain annuity.

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