Longer-Term Retirement Income

Deferred Annuities – What Are They?

A Deferred Income Annuity (also known as a DIA) may be the right annuity for you if you are looking for payments that begin at a future date (from two to thirty years from now) and continue for the rest of your life, a spouse’s life, and/or for a specified period of time.

If you are familiar with immediate annuities then a DIA can be thought of as an immediate annuity with a delayed start date. In many respects these two types of income annuities are alike (except for when payments to you begin). You can buy a DIA from an insurance company with either a single lump sum amount called a single premium, or with multiple deposits over time.

What Are My Product Options?

Guaranteed Future Income Annuities

A pension-like income stream for people who want level and predictable income when they retire.

Future Mutual Income Annuities

Ideal for people who wish for higher income potential over time. You’ll get steady guaranteed payouts, but you’ll also have the potential for additional income through nonguaranteed dividends.

Clear Income Fixed Annuities

A guaranteed and predictable income stream with the flexibility to access some of your money if you need it. This is for people who are willing to get a little less income in exchange for some flexibility in the event that life changes.

Key Considerations

The purchase of a deferred income annuity is irrevocable, meaning you generally cannot surrender this type of annuity in exchange for a contract value. Payments from a deferred income annuity are subject to ordinary income tax, but for non-qualified policies that benefit from an exclusion ratio, a portion of your payments may not be subject to further taxation.

Deferred income annuities can have an optional cost-of-living adjustment—where income payments for the same premium amount will initially be smaller than policies without this feature but will increase each year at the percent chosen—or optional death benefits (a deduction from your premium that pays for the guarantees that the optional benefits provide).