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Business Definition for: deferred annuity
Dictionary of Accounting Terms
deferred annuity

annuity whose first payment or receipt does not begin until some time after the first period; for example, an annuity of $1000 is not paid for the first three years and then commences payments at the end of each year from the fourth and continues through the end of that annuity.

Dictionary of Finance and Investment Terms
deferred annuity
See also deferred payment annuity
Dictionary of Business Terms
deferred annuity
See also deferred-payment annuity
Dictionary of Insurance Terms
deferred annuity

annuity that can be paid either with a single premium or a series of installments. For example, an annuitant pays a single premium of $100,000 on June 1 of the current year and is scheduled to receive a monthly income of $1300 at a specified later date. Or, the annuitant pays $50 a month to the insurance company, starting June 1, 1968, and ending June 1, 1987, and begins receiving a monthly income of $1300, beginning July 1, 1987.

See also annuity
Related Terms:
deferred payment annuity

annuity whose contract provides that payments to the annuitant be postponed until a number of periods have elapsed-for example, when the annuitant attains a certain age. Also called a deferred annuity.

deferred-payment annuity

annuity whose contract provides that payments to the annuitant be postponed until a number of periods have elapsed (e.g., when the annuitant attains a certain age). Also calleddeferred annuity.

annuity

series of equal periodic payments or receipts. Examples of an annuity are semiannual interest receipts from a bond investment and cash dividends from a preferred stock. There are two types of an annuity: (1) Ordinary annuity, where payments or receipts occur at the end of the period; (2) Annuity due, where payments or receipts are made at the beginning of the period.

Referring Terms:
ANNUITY, DEFERRE
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
 Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
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