Single Premium Deferred Annuity

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • single-payment deferred annuity
  • pre-paid deferred annuity
  • up-front deferred annuity

Acronyms

  • SPDA

Definition of Single Premium Deferred Annuity

  1. A deferred annuity that is fully funded with a single lump-sum payment in the accumulation phase. The income payments distributed in the payout phase can be fixed or variable. Also known as a "single payment annuity."

Related Terms and Acronyms

  • Tax Deferred Annuity (TDA) Acronym, Important,
    • A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
    More commonly known as a Tax Sheltered Annuity (TSA).
  • Single-Premium Life Insurance Definition,
    • Life insurance where all premiums are paid up front in a single lump sum payment.
  • Lump Sum Payment Definition,
    • One-time single-sum payment or payout.
    • An extra payment made to reduce a loan.
  • Deferred Annuity Definition,
    • An annuity that makes payments to the annuitant at some date in future instead of immediately.
  • Life Annuity Definition,
    • An annuity that will continue to make payments until the death of the annuitant.
  • Annuity Consideration Definition,
    • The payment(s) made by an individual in order to accumulate value in an annuity.
  • Immediate Payment Annuity Definition,
    • An annuity where payments to the annuitant start immediately after the annuity has been set up.
  • Annuity Definition,
    • A financial instrument that disperses a number of payments over a set period of time.
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
  • Annuitization Definition,
    • The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
  • Pre-paid Insurance Definition,
    • A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
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