This weekend I visited my family back in Cincinnati and got to meet my Dadâs new iPad for the first time. I donât have enough money for this fancy technology so Iâve never really used an iPad before.
Deferred Annuities. A deferred annuity grows tax deferred until the contract is annuitized (put into a payment stream) or surrendered (paid out as a lump sum). This type of annuity is a vehicle for accumulating savings for a future goal, such as retirement, and eventually distributing the value.
Owner-driven contracts pay a death benefit upon the death of the contract owner (who may not be the primary annuitant). This would likely lead a normal English-speaking person to conclude that any given deferred annuity contract is either one or the other. That would make sense, but itâs not the case.