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| Annuity Homepage - Annuities - overview page 2 |
tax-deferred annuity quote request form |
| Annuity Bulletin Board |
(California resident) tax-deferred annuity quote request form |
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| On this page (1) |
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| Categorization of Annuities |
SPDA (Fixed Annuity) |
| Annuities can be categorized in terms of: |
SPDA is the acronym for Single Premium Deferred |
| (1) The method of premium payment |
Annuity. An SPDA is purchased by depositing a 1 |
| (a) single premium |
time payment (called the premium). The money you |
| i.e., single premium deferred annuity, immediate |
invest is guaranteed by the insurance company and |
| annuity |
grows at a competitive, tax-deferred interest rate. Al- |
| (b) fixed annual premium, and |
though a current, competitive interest rate is paid, a |
| (c) flexible premium |
minimum stated rate of interest is guaranteed. The |
| i.e., flexible premium deferred annuity |
current interest rate you receive is a function of the |
| (2) the date benefits begin |
insurance company's current investment earnings & |
| (a) immediate* |
how competitive the insurer wants to be. |
| (b) deferred** |
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| * - immediate annuities create and income stream |
Life insurance companies offering annuities usually |
| of periodic payments that begin soon (usually a |
invest most of the annuity money they receive from |
| month or so) after the immediate annuity contract |
customers in investment grade corporate, utility, & |
| is issued. |
government bonds. |
| ** - deferred annuities allow your investment to grow |
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| tax-deferred during an accumulation period after your |
The money you invest in the annuity continues to |
| investment is made. Money accumulated in your an- |
grow, tax-deferred, until you decide to annuitize |
| nuity during the accumulation period can be withdrawn |
your contract and convert it into a periodic stream |
| (subject to penalties and/or restrictions dependent |
of payments. |
| upon the timing of the withdrawal) or annuitized (i.e., |
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| conversion of the accumulated value into an income |
FPDA (Fixed Annuity) |
| stream of periodic payments). |
FPDA is the acronym for Flexible Premium Deferred |
| (3) payout options [(a) thru (h) for deferred annuities |
Annuity. An FPDA usually allows a person owning |
| after accumulation period; (b) through (h) for immed- |
an FPDA to make deposits into the annuity as often |
| iate annuities beginning soon after money deposited] |
as they desire. Deposits can be made monthly, an- |
| (a) lump sum |
nually, quarterly, etc. for one or more years since |
| (b) life only |
there is no specified payment frequency. However, |
| (c) joint life only |
most insurers do set a minimum payment level for |
| (d) interest only |
administrative purposes. |
| (e) term certain |
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| (f) life with term certain |
Since the money you invest in an annuity is guaran- |
| (g) joint life with term certain |
teed by the insurance company issuing the annuity, |
| (h) life with refund |
it is important for you to be familiar with the financial |
| (4) number of lives |
health and stability of the life insurance company you |
| (a) single life |
are doing business with. |
| (b) joint life |
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