**a type of annuity that is paid out over a certain period of time**. For example, it might pay out over the course of 10 or 20 years. If you unexpectedly pass away during the payment term, you can have payments continue to a beneficiary.

## Which of the following is an example of deferred annuity?

The most common example of a deferred annuity is **a retirement fund where the investor is not yet ready to retire**. They defer their withdrawals (payments) until they retire. In the mean time, the fund earns interest. The fund continues to earn interest as the investor withdraws money from the fund.

## What is deferred annuity in simple terms?

What Is a Deferred Annuity? A deferred annuity is **a contract with an insurance company that promises to pay the owner a regular income, or a lump sum, at some future date**. Investors often use deferred annuities to supplement their other retirement income, such as Social Security.

## What is deferred annuity formula?

How are deferred annuities calculated? The formula for calculating a deferred annuity is **future value = present value × (1 + interest rate)^number of periods**.

## What is annuity with example?

In investment, an annuity is **a series of payments made at equal intervals**. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates.

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