Fixed Annuities

Annuity Premiums

When you purchase a deferred annuity, the contract may allow for installment payments of premium or it may allow for just one premium to be remitted.

Single Premium Deferred Annuities are contracts that allow for only one premium payment. The insurance company issuing the contract typically has written guidelines in place governing both the minimum and maximum premium payment that can be used to fund the annuity.

Installment premiums tend to be associated with more flexible annuity contracts, which often are called Flexible Premium Deferred Annuities. The contract may call for a specific series of payments that are due on a pre-determined schedule, or more often the policyholder is obligated to make certain minimum payments on a loosely defined schedule.

As noted in the prior section, immediate annuities involve paying a single premium in exchange for receiving a stream of guaranteed annuity payments that begin immediately.

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• Deferred Annuities vs. Immediate Annuities
• Annuity Premiums
• Options for Taking Annuity Payments (Annuitization)
• Annuity Charges and Fees
• How Fixed Annuities Can Be Used to Cover the Long Term Care Risk