Single Premium Deferred Annuity
Definition
- 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."
Synonyms
up-front deferred annuity, pre-paid deferred annuity, single-payment deferred annuity
Acronyms
SPDA
Related Terms and Acronyms
- Annuitization — Definition,
- The process of turning a retirement plan or annuity into income in the form of periodic payments or a single lump sum.
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Annuity Consideration — Definition,
- The payment(s) made by an individual in order to accumulate value in an annuity.
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Immediate Payment Annuity — Definition,
- An annuity where payments to the annuitant start immediately after the annuity has been set up.
- Life Annuity — Definition,
- An annuity that will continue to make payments until the death of the annuitant.
- Lump Sum Payment — Definition,
- One-time single-sum payment or payout.
- An extra payment made to reduce a loan.
- Pre-paid Insurance — Definition,
- A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
- Single-Premium Life Insurance — Definition,
- Life insurance where all premiums are paid up front in a single lump sum payment.
- Tax Deferred Annuity (TDA) — Acronym, Important,
- 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).
