In deferred annuity contract the saving phase is nothing but the phase in which the annuitant invest the lump sum money into his account. In the second phase i.e. income phase in which the contract is converted to annuity and the annuitant start getting payments. The deferred annuity contract gives you the tax benefit. The deferred annuity account’s earnings taxed at the time of withdrawal. This annuity plan covers death benefit too. Therefore the beneficiary is guaranteed the principal and investment earnings. A deferred annuity is of fixed or variable type.

In deferred annuity plan, the annuitant have to invest the funds by depositing the money in either equity indexed annuity, variable annuity, fixed annuity, or longevity annuity. However, there is a penalty if you withdraw anything before 59.5 years. You have to give 10 percent penalty tax plus the additional income tax. This additional income tax the annuitant generally has to pay during investment. The advantage of deferred annuity is you can get an option to convert the deferred annuity to the immediate annuity plan after a certain period. You can get various features if you invest your money in deferred annuity plan. Those associate features give you various benefits covering the death benefits too. The future income is totally secure and guaranteed in this annuity plan. Annuity rate calculation is very easy and helpful aspect for the annuitant.

The deferred annuity offers you plenty of choices to suits you the best. The fixed deferred annuity is very similar to certificate of deposit. Only difference is that you will get the interest deferred until the time when you make any kind from the contact. The insurance company will provide you the guaranteed annuity rate what you will get at the time of purchase of deferred annuity. Even you can go for variable deferred annuity too. This is similar to group of mutual funds. The variable annuities deferred to sub accounts. This sub account will include the equity investments and bond both. The returns you can get out of the deferred annuity investment will depend on the performance of the sub accounts of the main deferred annuity account.

The different annuity rates calculation you can get available on online. You can get an easy assistance out there. The calculation has different parameters namely immediate value calculator, and the future value calculator and similar likes. After a details analysis you can choose the particular annuity plan. However, be sure that plan will gives you the highest and accurate rate of return. A careful analysis need to done from your side before investing in a particular deferred annuity plan. It is you are hard on money, so the investment should be worthy enough. The detail analysis on the annuity rate, return on invest, the associate features, benefits, and the tax coverage, you can select the deferred annuity, which will suits you most. This is an investment for lifetime. You must want to spend your life with full of relief, enjoyment and peace, after your retirement days. A deferred annuity is a smart investment in terms of benefits, income payments, and associate additional features concern.