Deferred Annuity

A type of annuity contract that delays payments of income, installments or a lump sum until the annuitant elects to receive them. This type of annuity has two main phases, the savings phase in which you invest money into the account, and the income phase in which the plan is converted into an annuity and payments are received.

A deferred annuity can be either variable or fixed.

Definition courtesy of Investopedia

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