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Flexible premium annuity

A flexible premium annuity is an annuity that is intended to be funded by a series of payments. Flexible premium annuities have to be deferred annuities. It means that they are designed to have a significant period of payments into the annuity for the investment growth before any income return is provided out of them. Flexible premium annuities also almost universally allow additional money to be added after the initial premiums.

There are several types of flexible premium annuity like :-

Flexible Premium Fixed Annuity:-

Flexible Premium Fixed Annuity is a tax deferred annuity designed to help you accumulate money for retirement. Furthermore because Flexible Premium Fixed Annuity is tax deferred, money grows faster than it would in a similar taxable investment. In this case your money is not subject to the fluctuation of the stock market. The interest rate payable on your annuity is highly competitive in the marketplace as well.

Flexible Premium Deferred Annuity :-

Another type is Flexible Premium Deferred Annuity. It is a variable accumulation annuity contract designed to help you build savings for retirement or other long-term objectives. You have flexibility in the timing and amount of contributions, flexibility in the Investment options, flexibility in the alternatives you choose for your account values, flexibility in transferring your money between these alternatives and flexibility in accessing account information. You are supposed to make after-tax contributions to your individual flexible premium deferred annuity account. Not to be mentioned - any investment earnings grow tax-deferred in your account until withdrawn.

Upon death, the annuity value of your flexible premium deferred annuity will be paid directly to your beneficiary which avoids the expenses, delays and frustrations of probate. In flexible payment annuity, premiums may be flexible, both in terms of amount and frequency. The system can accommodate user specified premium options concerning minimum amounts, maximum amounts, scheduled premiums, and target premiums.

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