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.
Another example of a deferred expense is the $12,000 insurance premium paid by a company on December 27 for insurance protection for the upcoming January 1 through June 30. On December 27 the $12,000 is deferred to the balance sheet account Prepaid Insurance.