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 &
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).

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