What Are Deferred Annuities?
What Is a Deferred Annuity?
A deferred annuity is a type of annuity where your premium payments are invested for a period of time before you begin receiving income. Unlike an immediate annuity, which starts payments right away, a deferred annuity allows your money to grow tax-deferred during the accumulation phase, often for several years, until you’re ready to start receiving income. Once the deferral period ends, you can begin taking withdrawals or converting the accumulated value into a steady income stream. Deferred annuities are ideal for individuals who want to build up their savings for retirement and ensure a reliable source of income in the future. The growth during the accumulation phase is typically tied to either a fixed interest rate or an index, depending on the type of deferred annuity you choose. At Mountaineer Health and Life Insurance, we can help you understand if a deferred annuity is the right strategy to help grow your retirement savings.
Advantages of Deferred Annuities
Deferred annuities offer a range of benefits for individuals planning for future income:
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Tax-deferred growth – Your funds grow without being taxed until you begin withdrawals, allowing for faster accumulation of savings.
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Flexible accumulation phase – You can contribute to the annuity over time, with the option to invest for a period that suits your retirement timeline.
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Guaranteed income in the future – Once the deferral period ends, you can convert the accumulated value into a steady, reliable income stream.
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Protection from market volatility – Depending on the type of deferred annuity, your principal may be protected from market downturns.
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Customization options – Offers various payout options, such as lifetime income or fixed-period income, to meet your specific retirement needs.
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Choice of investment options – Some deferred annuities allow you to choose between fixed interest rates or investments tied to market indexes.
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Riders for added benefits – You can add optional riders, such as a death benefit or inflation protection, for enhanced coverage and flexibility.
Interested in exploring how a deferred annuity can help secure your retirement? Contact Mountaineer Health and Life Insurance to learn more.
Let Us Help at No Cost!
We’re here to walk you through the process step by step, answer your questions along the way, and help you understand all of your options in a way that actually makes sense. Our goal is to make things simple, clear, and stress-free—so you can feel confident about the choices you’re making.