Annuities✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A deferred annuity differs from an immediate annuity in that a deferred annuity:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A deferred annuity has an accumulation phase: value builds up over time before the owner elects to annuitize, and funding may be a single premium or flexible premiums paid over time. The defining feature is the delay between purchase and the start of income. Immediate annuities, by contrast, begin income within one payment interval — under the official objectives, within 12 months of the contract date.
Why the other options are wrong
- B) Starting income within a payment interval describes an immediate annuity, not a deferred one.
- C) Flexible-premium deferred annuities accept ongoing contributions; there is no first-year cutoff rule.
- D) A single-premium structure is typical of immediate annuities; deferred annuities may be single- or flexible-premium.
Memory hook
Deferred = save now, collect later. The accumulation runway defines it.