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.
Some deferred annuity contracts are also annuitant-driven (that is, they will pay out upon the death of either an owner or the primary annuitant). As if this were not complicated enough, the amount of such payout could be different if the contract provides a guaranteed minimum death benefit.