Single Premium Deferred Annuity

(redirected from SPDAs)

Single Premium Deferred Annuity

An annuity purchased with a lump sum payment by the annuitant, who does not begin to receive payments until some future date. Like all deferred annuities, an SPDA has two phases, a savings phase and an income phase. The savings phase involves the annuity taking the lump sum payment and investing it on behalf of the annuitant. In the income phase, the annuitant receives payments. It is important to note that an SPDA, like all deferred annuities, is not taxed until the income phase begins. It also pays a death benefit to the survivor(s) of the annuitant. See also: IRA, 401(k).
References in periodicals archive ?
Few buyers seemed to worry that Baldwin-United's SPDAS promised values that were "far beyond what the competition could match," as the Chicago Tribune reported in 1987.
Three examples of these, two of which are taken from the property/liability branch of the insurance business, are SPDAs, workers compensation, and earthquake coverage.
and Neil Wallace, 1992, SPDAs and GICs: Like Money in the Bank, Federal Reserve Bank of Minneapolis Quarterly Review, 16(3 ): 2-17.
Core products including traditional life insurance, SPDAs and SPIAs, create balanced earnings, risk and growth potential.
Because of First Colony's continued strategic pull-back, accumulation product sales declined; SPDA sales fell 29 percent to $91 million and single premium life sales fell 25 percent to $31 million.
PLACA continues to seek acquisitions of blocks of in-force business to lower unit costs and reach critical mass; in 1992 the company purchased a $100 million block of SPDAs.
Life of Virginia, an interest sensitive marketing unit of AON Corporation, markets traditional life, universal life, SPDAs and fixed and indexed GICs.