GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
50% - Moderately

Single Premium Deferred Annuity


Synonyms:pre-paid deferred annuity, single-payment deferred annuity, up-front deferred annuity
Acronyms &
abbreviations:
SPDA
Filed Under: annuities, estate-management, financial-banking, investments
Tags: annuity, investment, retirement
 

Definition of single premium deferred annuity (SPDA)

single premium deferred annuity (SPDA)
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:

  • annuitization   The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
  • annuity   A financial instrument that disperses a number of payments over a set period of time.
  • annuity consideration   The payment(s) made by an individual in order to accumulate value in an annuity.
  • deferred annuity   An annuity that makes payments to the annuitant at some date in future instead of immediately.
  • immediate payment annuity   An annuity where payments to the annuitant start immediately after the annuity has been set up.
  • life annuity   An annuity that will continue to make payments until the death of the annuitant.
  • lump sum payment   One-time single-sum payment or payout.
  • pre-paid insurance   A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
  • single-premium life insurance   Life insurance where all premiums are paid up front in a single lump sum payment.
  • tax deferred annuity (TDA)   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).

Search the Glossary

Mortgage Rates
Unlike the banks, you don't ever have to haggle with us over our rates. We will show you our best rates, right from the start. No fuss, no muss. Why don't you check out our mortgage rates right now?
Mortgage Rates
 
Best Mortgage Calculator
We pulled out all the stops and built the mortgage calculator you've all been dreaming of. Charts and graphs, side-by-side mortgage comparisons, lump sum payments, and more have all been added on top of a calculator that the Globe and Mail already considers the best on the internet. Try it now!
Best Mortgage Calc
 
Mortgage Brokers Are Up To Date
Staying up-to-date on mortgage rates, terms, and the best products available in Canada is what a mortgage broker does for you. Make sure that you get the best possible financing and rates, use a mortgage broker.
Try a Mortgage Broker