YOU ASK:
What is the definition of Single Premium Annuity?
WE ANSWER:
A Single Premium Annuity is an annuity that requires one lump sum payment and then the annuity is considered paid in full. Single premium annuities are different from other kinds of annuities that have a savings period over an extended period of time (a time when the annuitant makes regular deposits to the annuities).
One can buy a single premium annuity at almost any age, with the single premiums based on the amount of income payments desired, as well as the life of the contract.
Insurance companies and other financial firms sell single premium annuities, as well as other kinds of annuities.
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More insurance terms around single premium annuity:
- Single Premium Policies
- Soft Market
- Solvency
- Specified Disease Coverage
- Spendthrift Trust Clause
- Split-Dollar Life Insurance Plan
- Spread of Risk
- Stacking
- Standard Risk Class
- Statutory Accounting Principles (SAP)
- Short-Term Disability Income Insurance
- Shared Market
- Sewer Back-Up Coverage
- Severity
- Settlement Options
- Separate Account
- Self-Insurance
- Segregated Account
- Securitization of Insurance Risk
- Securities Outstanding