Deferred Annuity is the payments to you are deferred for a number of years. It may have tax advantages, in that the interest credited to your funds is deferred from current taxation and income tax is not payable until you begin getting distributions from the annuity. It is generally paid to you monthly and at a time specified period state by the policyholder, such as retirement, payments from the annuity can commence. Deferred annuities can be variable or fixed.

The information below will provide some answers and help you ask the right questions in order to find the most appropriate solutions.

Q. What is an Annuity?
A. Annuity is a financial instrument that pays as long as you live and it is designed to help people accumulate money for their retirement. Typically annuities are paid once a month or annually. A series of fixed payments paid at regular intervals over the specified period of the annuity.

Q. What are the different types of Deferred Annuities?
A. The two most common deferred annuities are fixed annuities and variable annuities.

Q. What is a Variable Deferred Annuity?
A. An annuity under which a portion of the policy's premium maybe invested in a variety of investment divisions. The amounts allocated to the Investment Divisions will fluctuate in value based on the performance of underlying investments. Assets allocated to the Investment Divisions are subject to market risk.

Q. What is a Fixed Deferred Annuity?
A. An Annuity where the individual knows what the current and guaranteed interests rates are and when the interest will be credited to the funds in the annuity. Rates are usually guaranteed for a specified time period. After the specified time period, the policy will generally receive a new interest rate every year equal to the standard rate being credited by the issuing company at that time.

Q. How are Annuities different from Life Insurance?
A. Both Annuities and Life Insurance should be considered in your long-term financial plan and also include death benefits, you buy life insurance in the event you die too soon and an annuity in case you live too long. In other words an Annuity is a contract between you and the Insurance Company, under which you make lump-sum payments. In return, the insurer agrees to create periodic payments to you beginning directly. Annuities guard against outliving your assets.

Types of annuities:-
Fixed Annuity or Variable Annuity, Straight Annuity or Life Annuity, Immediate annuity, Deferred annuity, Refund Annuity or cash refund annuity, Joint annuity.Life insurance is a kind of coverage that pays benefits upon a person's death or disability. In exchange for comparatively small premiums paid in the present, the policyholder receives the guarantee that a larger amount of money will be available in the future to help his or her beneficiaries pay debts. It provides economic protection to your loved ones if you die before your financial obligations to them are met.

Types of Life Insurances: -
Permanent Life Insurance, Term Life Insurance, Whole Life Insurance, Single Premium Life Insurance, Variable Life Insurance, Endowment Life Insurance, Universal Life Insurance, Term Life Insurance, Child Life Insurance, Senior Life Insurance, 10 Year Term Life Insurance, 20 Year Term Life Insurance, 30-Year Term Life Insurance, Short Term Life Insurance, Return of Premium Life Insurance, Critical Illness Life Insurance, Joint Whole Life Insurance, Mortgage Term Life Insurance, Variable Life Insurance, Joint Term Life Insurance, Long Term Life Insurance, Joint Life Insurance, Mortgage Life Insurance.