Single Premium Deferred Annuity


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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 ?
Fidelity & Guaranty Life Insurance Company (F&G Life) has launched a single premium deferred annuity that provides a choice of guaranteed interest rates for 5,7, or 10 years.
SPDA Series is a single premium deferred annuity with one-year and five-year guarantee periods.
The company is a leading provider in the equity indexed annuity, single premium deferred annuity, tax-sheltered annuity, structured settlement annuity, term, and universal life insurance markets.
As a result of AmVestors' single premium deferred annuity product features, which include a high first-year agent commission and policyholder crediting rate, management may be challenged to sustain productivity of existing IMOs and develop new relationships with IMOs.
Keyport Life Insurance Company, a leading annuity company, has introduced KeyIndex, the first single premium deferred annuity whose earnings are based on the percentage price change of the Standard & Poor's 500(R) Composite Stock Price Index.

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