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What is the difference between immediate annuity and deferred annuity?
Wiki User
∙ 12y ago
First, the word "annuity" can be used for different things. Be sure to know what you're working with. Annuities are investments through insurance companies. There are good and bad. Annuities might ALL be called "deferred" because their earnings are tax deferred. You pay taxes on the earnings when you take money out. The IRS sets the rules. Annuity earnings WILL BE taxed, even if received in monthly payments or passed on to beneficiaries.
Immediate and deferred refer to 2 different features of annuities. Deferred is taxes. Immediate is payments. If you place a lump sum with the insurance company, they can start paying you monthly payments based on that lump sum. If the payments start immediately, it is called immediate. If payments start later, it could be called deferred. Annuities can be wonderful or horrible, so do lots of good research.
Wiki User
∙ 12y ago
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What is the difference between the term annuity with a small a and the term Annuity with a capital A?
I don't believe there is any difference.
Is there a difference between a life annuity and an insurance annuity?
There isn't a real difference between life annuity and an insurance annuity. Both are a form of life insurance and deal with the same issues. I would go with either one.
What The difference between ordinary annuity and annuity due?
ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period
What are annuities?
There can be a few different definitions but in short as it applies to insurance or financial services: = Two Main Annuity Types: Immediate and Deferred = The difference between deferred and immediate annuities is just about what you'd think. With an Immediate Annuity your income payments start right away (technically, anytime within 12 months of purchase). You choose whether you want income guaranteed for a specific number of years or for your lifetime. The insurance company calculates the amount of each income payment based on your purchase amount and your life expectancy. A deferred annuity has two phases: the accumulation phase, where you let your money grow for a while, and the payout phase. During accumulation, your money grows tax-deferred until you take it out, either as a lump sum or as a series of payments. You decide when to take income from your annuity and therefore, when to pay the taxes. Gaining increased control over your taxes is one of the key benefits of annuities. The payout phase begins when you decide to take income from your annuity. For most people, this is during retirement. As your needs dictate, you can take partial withdrawals, completely cash-out (surrender) your annuity, or convert your deferred annuity into a stream of income payments (annuitization). This last option is essentially the same as buying an immediate annuity.
What is the Difference between the future value of annuity and sinking fund?
future value of an annuity is a reciprocal of a sinking fund
What is the primary difference between an annuity and a compound annuity?
difference between an annuity and a compound annuity?Read more: What_is_the_primary_difference_between_an_annuity_and_a_compound_annuity
What is the difference between the term annuity with a small a and the term Annuity with a capital A?
I don't believe there is any difference.
Is there a difference between a life annuity and an insurance annuity?
There isn't a real difference between life annuity and an insurance annuity. Both are a form of life insurance and deal with the same issues. I would go with either one.
What The difference between ordinary annuity and annuity due?
ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period
What is the difference between a lump sum and annuity?
The difference between a lump sum and annuity is, lump some you get a anywhere between half or 3 quarters of the money. An annuity is where you will get a certain amount of money for a certain amount of years.
What is difference between annuity and compound interest?
Pundai
What are annuities?
There can be a few different definitions but in short as it applies to insurance or financial services: = Two Main Annuity Types: Immediate and Deferred = The difference between deferred and immediate annuities is just about what you'd think. With an Immediate Annuity your income payments start right away (technically, anytime within 12 months of purchase). You choose whether you want income guaranteed for a specific number of years or for your lifetime. The insurance company calculates the amount of each income payment based on your purchase amount and your life expectancy. A deferred annuity has two phases: the accumulation phase, where you let your money grow for a while, and the payout phase. During accumulation, your money grows tax-deferred until you take it out, either as a lump sum or as a series of payments. You decide when to take income from your annuity and therefore, when to pay the taxes. Gaining increased control over your taxes is one of the key benefits of annuities. The payout phase begins when you decide to take income from your annuity. For most people, this is during retirement. As your needs dictate, you can take partial withdrawals, completely cash-out (surrender) your annuity, or convert your deferred annuity into a stream of income payments (annuitization). This last option is essentially the same as buying an immediate annuity.
What is the Difference between the future value of annuity and sinking fund?
future value of an annuity is a reciprocal of a sinking fund
What are the differences between hire purchase transaction and deferred payment?
give three similarities and three difference between hire purchases and deferred payment
How does a US annuity differ from a Swiss annuity?
The biggest difference between a US annuity and a Swiss annuity is that Swiss annuities are not subject to the usual tax and bankruptcy reporting requirements and can be used in offshore tax planning.
What is the difference between usance and deferred payment LC?
No difference as both are alternate names of each other
What is the difference between immediate and ultimate cause if behavior?
immediate is giw an organism does something and immediate is why an organism does something
