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?
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
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).